How a 3-D Printer Saved Zeesy Stern's

CRAINS

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® JANUARY 11-17,2016 | PRICE $3.00 NEW YORK BUSINESS

How a 3-D printer saved Zeesy Stern’s jaw New York’s most cutting-edge doctors have embraced one of the handiest tools of the digital age to transform people’s lives—and cut costs PAGE 16

VOL. XXXII, NO. 2 WWW.CRAINSNEWYORK.COM Where DRAMA

02 Cuomo’s THE LIST RETURNS 5 big plans New York’s top SBA TO CITY fall short lenders and loans OPERA Pages 3, 4 and 7 Pages 13-14 PAGE 10 NEWSPAPER 71486 01068 0

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JANUARYCRAINS 11-17, 2016

FROM THE NEWSROOM | JEREMY SMERD Cuomo’s mad dash IN THIS ISSUE 4 AGENDA

GOV. ANDREW CUOMO grabbed headlines ahead of his State of 5 IN CASE YOU MISSED IT the State address this week with a slew of projects that made 6 WHO OWNS THE BLOCK business owners with big stakes in the state feel as if he’s 7 REAL ESTATE Fighting a advancing half-baked ideas. 8 ASKED & ANSWERED wage hike by The governor has shown he’s committed to repairing the supporting it 9 RETAIL state’s shoddy infrastructure. He’s building a new Tappan 10 Zee Bridge, backing a new trans-Hudson train tunnel and SMALL BUSINESS helping the Metropolitan Transportation Authority pay for 12 VIEWPOINTS its capital plan. 13 THE LISTS But his love for a big project with his fingerprints on it His love for a big FEATURES seems to ignore the careful planning undertaken by the agencies charged with thinking about these things. project with his 15 THE GIG ECONOMY The governor last week proposed adding a third track to fingerprints on it 16 COVER STORY the Long Island Rail Road—a project that was not important seems to ignore the 24 GOTHAM GIGS enough to make it into the MTA’s capital plan—and a Long Island-Westchester car tunnel that has gone nowhere since careful planning being conceived in the 1960s. His $1 billion idea to expand undertaken by others the Javits Center (see story, Page 7) seems as slapdash as his plan four years ago to put a convention center next to Aqueduct. Consider that a similar Javits plan pegged at $1.7 billion in 2005 was canceled when the Spitzer administration found it would cost as much as $5 billion. Cuomo’s vision for Penn Station seems equally curious. Rather than right a Broadway’s historical wrong that saw the destruction of the original Beaux-Arts building, he P. 24 bookkeeper will keep Madison Square Garden (see Editorial, Page 4), severely limiting the ability to bring light and space into the station’s congested warrens. The plan also appears 25 SNAPS to ignore a binding agreement giving the Related Cos. and Vornado Realty Trust the 26 EXECUTIVE MOVES right to develop the Farley post office across the street into Moynihan Station. 27 PHOTO FINISH If these ideas are not coming from the agencies overseeing infrastructure, where CORRECTION are they coming from? The governor’s original inner circle has been hollowed out. RIC CURTIS is an anthropology professor at John Jay True, Alphonso David remains, now in the role of counsel, and Jim Malatras College of Criminal Justice. His given name was misspelled returned to lead state operations. But Pat Foye is leaving as the head of the Port in the Jan. 4 “The Drug Dealer’s Dilemma.” Authority after not being named its new CEO, even though he is well qualified for it. Meanwhile, Empire State Development, under CEO Howard Zemsky, is reportedly under investigation by Preet Bharara for its Buffalo Billion program. Which brings me to the elephant in the room. Sheldon Silver and Dean Skelos shared the stage with the governor during his State of the State last year. This year both are on their way to prison. The U.S. attorney for the Southern District is on the march and the governor seems more isolated than ever, suggesting that his big plans to move New York may ultimately go nowhere. Ⅲ ON THE COVER PHOTO: BUCK ENNIS

CONFERENCE CALLOUT FEBRUARY 25 DIGITAL DISPATCHES CRAIN’S BUSINESS Go to CrainsNewYork.com BREAKFAST FORUM READ Melissa Mark-Viverito, speaker of the New Yorkers prefer to tip rather City Council, will outline than pay higher menu prices or service her priorities for the second half fees, like those instituted by restaurateur Danny Meyer. A NYC > of her term and answer Hospitality Alliance survey said about questions from 40% of restaurant-goers said they would Crain’s journalists. dine out less if prices increased. NEW YORK ■ CityMD has partnered with Zipdrug, a ATHLETIC CLUB Manhattan startup, 8 a.m. to 9:30 a.m. to speed prescription delivery [email protected] to the clinic’s patients. The urgent-care chain is piloting a Zipdrug digital kiosk at its Murray Hill outpost. Vol. XXXII, No. 2, January 11, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY LISTEN to an in-depth examination of 3-D 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s printing, plus a discussion of Gov. Andrew New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years.(GST No. Cuomo’s big plans for New York City. Music 13676-0444-RT) by Foxtrax CrainsNewYork.com/Podcast

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AGENDAWHAT’S NEW JANUARY 11, 2016 The long-awaited overhaul of awful Penn Station comes a bit too soon

f destroying the original Penn Station was the worst urban planning decision of the past 60 years, putting Madison Square Garden on top of the new one was a close second. The arena smothers the station underneath and requires support columns Ithat clutter its platforms and passageways. Gov. Andrew Cuomo’s proposal last week to renovate Penn Station is a welcome recognition that the transportation hub needs to be overhauled in the worst way. But the worst way to do it is with a massive ROOTED: Most arena sitting on top of the station. And that is where Madison Square of the Garden would stay in Garden would remain, according to Cuomo’s plan. place under The Garden’s hulking presence will complicate the project’s logistics Cuomo’s plan. and drive up costs. That is why the City Council in 2013 limited the arena’s permit extension to 10 years. it deserves. And the actual delay before shovels hit the ground would be It’s understandable that Cuomo doesn’t want to wait until 2023. He less than that, given that it will take years to design the project, assem- would like construction to at least begin while he is governor, and would ble the necessary funding and line up partners for the real estate devel- rather not subject 600,000 daily passengers to the cramped and confus- opment to complement and subsidize it. ing station any longer than necessary. Make no mistake: Cuomo’s plan would Moreover, there are risks to putting A proper renovation of the transit hub be a major improvement. The governor things off until the Garden moves: requires Madison Square Garden to seems to have talked Garden boss James Whoever is governor when the arena’s move from on top of it. The arena’s Dolan into selling him the theater on the permit expires might not be interested in back side of the arena; that venue would be fixing Penn Station, and the favorable permit expires in seven years torn down to allow some natural light into economic conditions that make the proj- the dungeon-like train station. And ect attractive today—such as surging tax revenues, low borrowing costs Cuomo’s impetus will likely ensure that work gets underway this year on and a sizzling market on the West Side—won’t last forever. It is possible conversion of the Farley post office across the street into a majestic train that all the stars will never align. hall for Amtrak. But New Yorkers have waited more than a half-century for a Penn Cuomo argues that we shouldn’t let the perfect be the enemy of the Station that measures up to the grandiose one that was tragically demol- good. But perfection is within reach. After years of tortured commutes, ished in 1963. We can wait seven more years to give Penn the makeover New Yorkers deserve no less. – THE EDITORS

FINE PRINT Mayor Bill de Blasio signed an order providing six weeks of paid parental leave to roughly 20,000 nonunion city employees, setting the stage for municipal unions to win a similar benefit in future contract negotiations.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS THE CITY’S ONLY stand-alone Chick-fil-A eatery reopened last week BOTTOM OF THE after closing Dec. 30 to rectify health-code violations. On Dec. 31, New York’s FOOD CHAIN CITY AND THE “minimum wage was

raised to $9 an hour. Number of days Chick-fil-A’s The very next day, we fell midtown location was open 82 before it received its second behind Vermont, New C-level inspection score Jersey, Massachusetts, Pennsylvania and Average inspection Portion of new restaurants score for new % inspected in the past two Connecticut. 14.4 restaurants, which 98.7 years that scored better than translates to a B grade. The Chick-fil-A — Assembly Speaker Carl Heastie, lower the point total, the pledging to push another minimum- better. To get an A, restaurants Typical letter grade earned by a new wage increase during the new must tally no more than 13 restaurant in the inspection immediately points. Chick-fil-A’s total was 59. legislative session B following a C-level evaluation

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCE Crain’s analysis of city Department of Health restaurant inspection data

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AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Alexis Sinclair, 212.210.0701 EDITORIAL Wall Street readies itself editor Jeremy Smerd assistant managing editors Barbara Benson, for the slings and arrows Erik Engquist, Peter S. Green web editor Amanda Fung copy desk chief Steve Noveck ERNIE SANDERS aimed his fiery rhetoric at Wall art director Carolyn McClain photographer Buck Ennis Street last week, accusing America’s financial senior reporters Joe Anuta, Aaron Elstein, titans of using fraud as a business model. It’s Matthew Flamm, Daniel Geiger reporters Rosa Goldensohn, B Jonathan LaMantia, Caroline Lewis unlikely the Vermont senator will ever be president, data reporter Gerald Schifman but it wouldn’t take much for the political climate to web producer Peter D’Amato columnist Greg David turn hostile again toward the biggest cog in New York contributing editors Tom Acitelli, City’s economic engine, especially now that the stock Theresa Agovino, Paul Bennett, Erik Ipsen, Judith Messina, Cara S. Trager market has gotten stormy. ADVERTISING Hillary Clinton, www.crainsnewyork.com/advertise Even whom Sanders berates for being advertising director Irene Bar-Am too chummy with Wall Street, says she wants to elimi- [email protected] or 212.210.0133 nate one of its favorite things: a loophole that taxes senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, money managers’ pay at the advantageous capital- Stuart Smilowitz account managers Jake Musiker gains rate rather than as ordinary income. marketing coordinator LeAnn Richardson Back in 2009, Rep. Barney Frank made a group of Wall Street CEOs squirm when he asked them point- sales/events coordinator Ashlee Schuppius 212.210.0282 blank: “If you didn’t get a bonus, what part of your job would you not do?” It’s been a long time since [email protected] ONLINE any politician zinged the financial elite like that, probably because few of them possess Frank’s wit or general manager Rosemary Maggiore 212.210.0237 want to offend the people who finance their campaigns. [email protected] But expect more, perhaps as soon as next month, when the state comptroller’s office reports just CUSTOM CONTENT director of custom content how big Wall Street bonuses were in 2015, a year when the stock market returned next to nothing. Patty Oppenheimer 212.210.0711 [email protected] The antipathy may be mostly hot air unless, of course, there’s another market crash. The bailouts EVENTS that saved the city’s vital financial-services sector after the 2008 crisis are unlikely to be as generous. www.crainsnewyork.com/events director of conferences & events To avoid being cast aside, Wall Street is quietly lining up behind its preferred candidates. Last week, Courtney Williams, 212.210.0257 Hank Greenberg [email protected] for example, former AIG chief gave $10 million to Jeb Bush, whose brother’s administra- manager of conferences & events tion famously bailed out AIG in 2008. — AARON ELSTEIN Adrienne Yee AUDIENCE DEVELOPMENT director of audience & content partnership development Michael O’Connor, 212.210.0738 Pot dispensary opens DATA POINT ital officer and was most recently [email protected] Columbia Care opened the city’s Gov. Andrew Cuomo’s top digital CRAIN’S 5BOROS THE MEDIAN HOME-SALE PRICE IN www.5boros.com first medical-marijuana dispensary honcho. She will remain in New Irene Bar-Am, 212.210.0133 last week near Union Square. Three MANHATTAN HIT A RECORD $1.1 York City. [email protected] more licensed centers will open in SPECIAL PROJECTS MILLION IN THE FOURTH QUARTER manager the five boroughs this year, offering In memoriam Alexis Sinclair 212.210.0701 [email protected] pills and other nonsmokable OF 2015, SURPASSING THE MARK Judith Kaye, the first woman to be REPRINTS reprint account executive Krista Bora cannabis products. SET PRIOR TO THE 2008 RECESSION appointed to New York state’s top court, died at 77. Gov. Mario Cuomo 212.210.0750 PRODUCTION Free Wi-Fi named Kaye chief judge of the Court production and pre-press director The digital divide is narrowing with of Appeals in 1993, a post she held Simone Pryce the $200 million rollout of ad- until her mandatory retirement in media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE supported Wi-Fi stations known as rider geo-location information and 2008. — AMANDA FUNG www.crainsnewyork.com/subscribe LinkNYC. In the coming weeks, the adopt other privacy practices. [email protected] first 10 stations, along Third Avenue, 877-824-9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 will provide gigabit-speed Wi-Fi to Faded gilt one year, $179.95 two years, for print users within 150 feet of the kiosks. Flash-sales sites have lost their lus- subscriptions with digital access. to contact the newsroom: Also, all 278 underground subway ter. Gilt Groupe has been sold to www.crainsnewyork.com/staff stations will have Wi-Fi by the end of Saks Fifth Avenue owner Hudson 685 Third Ave., New York, NY 10017-4024 2016, officials announced. Bay Co. for $250 million, a fraction phone: 212-210-0100 fax: 212-210-0799 of its earlier $1 billion valuation. Gilt Entire contents ©copyright 2016 Crain Communications Inc. All rights Bonuses squeezed will be incorporated into Saks Off reserved. ®CityBusiness is a registered Wall Street fixed-income traders 5th, a discount retail chain. trademark of MCP Inc., used under license agreement. are expected to get significantly CRAIN COMMUNICATIONS INC. smaller bonuses after poor results in Girls grows up BOARD OF DIRECTORS the last half of 2015. Among the HBO’s comedy Girls will wrap with chairman Keith E. Crain banks reportedly set to dole out less its sixth and final season in 2017. president Rance Crain treasurer Mary Kay Crain, Cindi Crain money is Morgan Stanley. Equity Show creator Lena Dunham, a executive vp, operations William Morrow traders will likely receive about the Crain’s 40 Under 40 honoree in executive vp, director of strategic Good as gold operations Chris Crain same bonus as they did last year. 2011, is about to turn 30, which she First came the $295 burger at executive vp, director of corporate said is the perfect time to wrap up operations K.C. Crain Serendipity 3. Now meet the $100 AG ends Uber probe the series about young women in senior vp, group publisher David Klein doughnut. The family-operated vp/production, manufacturing David Kamis Uber will pay a $20,000 fine for a their 20s. Manila Social Club in Williamsburg chief financial officer Thomas Stevens 2014 data breach as part of a settle- chief information officer Anthony DiPonio has unveiled its Golden Cristal Ube ment with the state attorney gener- NY digital czar goes private founder G.D. Crain Jr. [1885-1973] sweet treat. The pastry is filled with chairman Mrs. G.D. Crain Jr. [1911-1996] al’s office, which had been investi- Rachel Haot has joined Washington, secretary Merrilee Crain [1942-2012] gating the firm’s data-protection D.C.-based venture fund 1776 as a an ube mousse and Champagne practices for 14 months. The ride- managing director. The Brooklyn jelly, and covered with 24k gold.

BLOOMBERG NEWS BLOOMBERG hailing app also agreed to encrypt native was the city’s first chief dig-

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AGENDA WHO OWNS THE BLOCK REAL ESTATE

625 EIGHTH AVE.

A new bus terminal’s multiplier effect How a $10 billion transit investment could spur some supertowers

BY TOM ACITELLI

hen Extell Development opened the 60-story, 551-unit Orion building at 350 W. 42nd St. in 2006, the 630-foot tower wasW not only the tallest residential property in the Times Square area, it was one of the 100 highest residential buildings in the world at the time. It was also a supreme gamble. The Orion was full of luxury condos in a gritty slice of Manhattan where rentals dominated the residential market. Yet, within a year of sales starting, every one of the tower’s condos had sold, all for more than $1,000 per square foot. Extell’s gamble, made with financial backing from private- equity giant the Carlyle Group, was one of ZIP CODE 340 W. 42ND ST. the earliest and loudest success stories of New York’s prerecession real estate MILLION-DOLLAR BEDROOMS A company that Extell controls also owns this squat building that hosts boom. 350 W. 42ND ST. Times Square’s main post office. History could soon repeat itself. The Extell acquired the parcels for the The city’s latest tax assessment, in area is being eyed for a public infrastruc- Orion’s footprint beginning in 2001. May, estimated its market value at The latest recorded sale in the just over $16.3 million. ture project that would cost billions and tower, in late October, was $1.325 spark other new development. million for a 768-square-foot one- In late October, the board of the Port bedroom on the 43rd floor. Authority of New York and New Jersey approved a design competition for a new bus terminal to replace the aging, hulking structure at 625 Eighth Ave. that services around 8,000 buses daily. The competition calls for the new depot to be on a Ninth Avenue site one block west of the current one. Designers could pitch alternative sites. KEEP ON ROLLING 625 EIGHTH AVE. The message was clear: The push was on to replace the world’s busiest The Port Authority owns the bus terminal, which was finished in 1950 at a bus depot. And paying for it figures to cost of $24 million in that era’s money. OLD MCGRAW-HILL BUILDING create opportunities for other projects. It grew 50% in a 1979 expansion. 330 W. 42ND ST. The Port Authority estimated that a The 35-story office tower was built fresh terminal would cost up to $10 bil- in 1931 as the headquarters of the lion. To raise funds, the agency said it would sell McGraw-Hill publishing house, the approximately 2.3 million square feet of air which left in 1969. An investment rights above the current terminal. Given that air group called Deco Towers Associates has owned the building rights in Manhattan can trade for up to $300 a since 1994. Its estimated market square foot, that translates into a maximum of $690 value is $119.1 million, according million in today’s money, never mind years down to the city’s May assessment. the road, when construction would actually begin. That is not nearly enough for the whole project, but perhaps enough to get started. A buyer with such air rights in hand could then build another soaring tower for the block, similar to the Orion a decade ago, and reap similar returns. Ⅲ BUCK ENNIS

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AGENDA REAL ESTATE

Cuomo’s Javits Center plan: Who would foot the bill?

Room taxes and land sales may not cover the cost BY JOE ANUTA

ov. Andrew Cuomo’s income of $1 million—raising the announcement last week question of whether it would have of a planned $1 billion deep enough pockets to get financ- expansion of the Jacob K. ing for the project. GJavits Convention Center on The Javits organization, created Manhattan’s West Side promised by New York state but operating jobs and economic activity, but neg- independently, also controls sever- lected to mention how it will be al pieces of real estate that could be funded. And the debt on a previous sold or leased to generate cash. One renovation is not scheduled to be of the parcels is immediately south retired for another 30 years. of the center, at the terminus of the The 1.2 million-square-foot High Line. expansion would likely bump Javits It’s now a staging point for well into the nation’s top 10 con- trucks delivering materials to the tearing down Javits North, a tempo- cost as much as $5 billion. vention centers by size. The center. Cuomo’s plan includes a rary addition to the building that Even if Javits does finance the revamp would include 500,000 new garage for the trucks. was part of an earlier renovation that project, critics have wondered about square feet of contiguous exhibi- Another parcel is a nearly is still being paid off. Paying off the the wisdom of pumping more tion space, a new ballroom and a 50,000-square-foot lot across 11th bonds for that earlier project, money into a highly competitive terrace overlooking the Hudson Avenue between West 35th and financed by a $1.50 per-night sur- industry that has been characterized River. Cuomo said that the added West 36th streets, and comes with charge on every hotel room in New by a race to the bottom. space would attract events that some of the city’s highest zoning York City, will take until 2045. “In terms of the public benefits of currently find Javits too small. allowances for residential, com- Initially, those renovations were Javits, $1 billion spent on expanding Officials said that the cash mercial or hotel space. The proper- part of a plan by former Gov. George it is not likely to bring a substantial would come from existing Javits ties were previously valued at Pataki for an upgrade similar in scale amount,” said Heywood Sanders, a resources. A financial statement about $900 million and would like- to what Cuomo has proposed—but it convention-center expert and pro- released by the center indicates ly fetch more today. was scrapped after Pataki’s succes- fessor at the University of Texas at that in fiscal 2015 it generated net Part of Cuomo’s proposal includes sor, Eliot Spitzer, found that it could San Antonio. Ⅲ

Macy’s mulling sale of 34th Street flagship store

acy’s wants to capital- in the project had not been previ- ize on its real estate ously disclosed. The Standish, at holdings. The giant 169 Columbia Heights, is DDG’s retailer has hired Eastdil first project outside Manhattan and MSecured to explore the sale of a stake its first conversion in the city, in its flagship Herald Square store, a where until now it has only built 2.2 million-square-foot building projects from the ground up. DDG that sits on an entire city block. is well known for ultraluxury resi- Macy’s has been under pressure to dential buildings that feature dis- boost its stock price and sales. tinct, handmade bricks from Denmark. Related’s SoHo gamble The Related Cos. will begin erect- Changing East New York ing a boutique office building in In a Crain’s op-ed (see Page 11), SoHo, reversing its plan to first Brooklyn Borough President Eric secure a tenant before breaking Adams and City Council member ground on 300 Lafayette St., Rafael L. Espinal Jr. lay out their according to sources. The $200 terms for supporting Mayor Bill de dreds of abandoned homes in New and derelict properties. million, seven-story terra-cotta Blasio’s embattled rezoning plans York City fall into disrepair, rack- and limestone building will have in East New York. They call for ing up more than $2 million in vio- WTC tenants 30,000 square feet of retail and more resources to preserve afford- lations and causing more than $14 Tech, health care and creative firms 53,000 square feet of office space. able housing and build new very- million in lost property value for continue to flock to the World It sits on East Houston Street across low and low-income units; a 50% neighbors, according to a report by Trade Center site. Progenics from the Puck Building on a site preference in new housing for local the state Senate’s Independent Pharmaceuticals, which makes that had been occupied by a BP gas residents; and rules that force Democratic Conference. Sen. Jeff prostate-cancer drugs, is moving station. developers to build affordable Klein is pushing to require public its headquarters to 1 WTC, where it homes large enough for families. registries of properties in fore- will take 26,500 square feet. Brooklyn Heights condo conversion They also want restrictions on the closure in the hope that officials Meanwhile at 3 WTC, media agency Manhattan condo developer DDG big-box stores that displace small around the state will pursue GroupM has signed up for an addi- has joined with Westbrook businesses. negligent lenders. He and his tional 170,000 square feet at the Partners to redevelop the former conference also aim to strengthen Silverstein Properties tower, which Standish Hotel in Brooklyn Heights Foreclosure woes continue laws that govern when banks are is scheduled for completion in 2018.

BUCK ENNIS from a rental to condo. DDG’s role Mortgage lenders have let hun- required to maintain abandoned — JOE ANUTA AND DANIEL GEIGER

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AGENDA ASKED & ANSWERED ECONOMY

CAROL KELLERMANN INTERVIEW BY ROSA GOLDENSOHN

arol Kellermann runs the Citizens Budget It’s very likely that Commission, a nonpartisan research group that has “Health + Hospitals will scoured the city budget since 1932. She and her have a cash crisis in band of wonks keep tabs on government spending 2016. Not just a budget Cand advocate for fiscal choices that will keep the city out of the deficit on an account- red.A former deputy commissioner of the city’s Department of Finance, Kellermann also ran the September 11th Fund. ing basis, but actually running out of money How’s the city doing fiscally? A lot of extra spending is coming down the pike. [Mayor Bill de Blasio] is announcing new programs all the time. Add them up and it’s an extra hundreds of millions a year. He’s added a little extra to behavioral health and to supportive housing. I’m not at the point of saying that it’s freewheeling; the mayor wants to be fiscally responsible. It’s very likely that Health + Hospitals will have a cash crisis in 2016. Not just a budget deficit on an accounting basis, but actually running out of money.

So we’ll see the city pile on social services? Overtime in the uniforms [police, fire, etc.] is going to be higher than planned, probably more money for Health + Hospitals, could be more money for the Housing Authority, another priority of the mayor’s. Right now social services, excluding homeless DOSSIER services and Medicaid, are a relatively small proportion of the city budget. I expect to see it grow. It’s now less than 5%. As NAME Carol Kellermann long as it stays around that level, it’s not a significant factor. WHO SHE IS President, Citizens Budget Commission What’s the danger with spending? AGE 65 Sooner or later there will be a downturn. This has been the BORN New York City longest period of growth, albeit anemic growth, in 60 years. EDUCATION Harvard College, B.A. There will be a stall, and that may be OK in the short term if it’s in government; Harvard Law School, covered by revenue. To be prepared, we should keep our J.D. spending down and avoid adding new programs that are difficult CAMPAIGN ROOTS Kellermann to cut. In a downturn you won’t have money to cover everything. ran Sen. Charles Schumer’s first congressional campaign in 1980. At How is 2016 shaping up, revenue-wise? headquarters, a former fruit store in One of the big unknowns is the 421-a [tax break for new Sheepshead Bay, Brooklyn, she locked her precious Xeroxed voter files in the housing]. If it expires, then you’d have a lot less new shop’s walk-in freezer at night. construction—and the revenue that creates. SPIRIT ANIMAL Kellermann would rather be called a watchdog than a budget Any chance of reforms to other aspects of the property tax? hawk. “Hawk sort of implies you’re totally There doesn’t seem to be an appetite, to use the governor’s against spending, which we’re not.”

phrase, in the City Council or mayor’s office to really reform the BUCK ENNIS property tax. Everyone agrees it is not really treating properties fairly. But whenever you change it, there will be winners and losers. No one wants to deal with that.

What do you see Gov. Andrew Cuomo focusing on in 2016? He will try to thaw relations with those interests with whom he has been tough in the past, in particular the public-employee unions. With respect to the most difficult issues that will involve someone having to experience pain, he will put them off as long as he can— for example, higher tolls to fund the new Tappan Zee Bridge.

Will he be spending money downstate? He’s going to continue to focus on upstate and Long Island. He probably is starting to feel that if he just focuses intensely— some would say excessively—on economic-development projects, they will start to take off. Plus, he now has an upstate economic-development czar from Buffalo. Ⅲ

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AGENDA RETAIL

Back guv, get a tax break? Retail Council allies with Cuomo on wage hike—again BY ROSA GOLDENSOHN

he Business Council of “We accepted the governor’s New York State, industry invitation to serve on this new groups and a number of campaign to reiterate our willing- chambers of commerce ness to be part of a constructive Thave formed a Minimum Wage dialogue with Gov. Cuomo, the resents both sole proprietors and by Cuomo. Later, when restaurant Reality Check campaign to fight state legislature and organized national chains, has played the owners opposed Cuomo’s push for Gov. Andrew Cuomo’s proposed labor toward a sustainable increase long game before. Potrikus, a another minimum-wage hike and $15 base pay. in the state’s minimum wage,” Cooperstown native, worked with blocked action in the legislature, the But one trade association is Potrikus told Crain’s. “We’re not the governor on his previous governor convened a wage board playing nice—just as it did in 2013 endorsing anything specific, but minimum-wage hike. In 2013, that imposed an even larger pay when it endorsed a minimum- we recognize this as a unique Potrikus wrote in the Albany Times raise, specifically on the fast-food wage hike and then received a tax opportunity to express concerns Union that although his members industry. Retailers, though, were credit that its members could use held by our members large and “may not be wildly in favor of spared. to offset some costs of the pay small and, at the same time, listen another potential hit to the bottom In September, the Retail increase. to the concerns of the people who line,” his organization’s concerns Council, which bills itself as the Ted Potrikus, president and CEO shop in our stores.” could be met with compromises state’s largest full-service retail of the Retail Council of New York Retail workers are among the such as a gradual increase. His op- trade association, said it saw State, a store owners’ group, has biggest potential beneficiaries of ed noted that low wages across the “value” in Cuomo’s minimum- joined the team advocating for the the proposed increase. There are economy were limiting the amount wage goal but stopped short of pay raise. Potrikus was spotted last more than 310,000 retail salespeo- of money consumers could spend endorsing it. Retailers were “con- week at the governor’s midtown ple in the state, according to on retail goods. cerned about the effect of a $15- rally for a wage hike and will serve Bureau of Labor Statistics data, and The group’s strategy paid off. The an-hour threshold on the indus- as vice chairman of the governor’s they earn a median wage of $10.32 tax credit for retailers (but not for try’s ability to create and provide Mario Cuomo Campaign for an hour. some other employers) was pack- jobs,” but it added that “all work- Economic Justice. The Retail Council, which rep- aged with the wage increase signed ers deserve a level playing field.” Ⅲ

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JANUARY 11, 2016 | CRAIN’S NEW YORK BUSINESS | 9 20160111-NEWS--0010-NAT-CCI-CN_-- 1/8/2016 2:33 PM Page 1

AGENDA SMALL BUSINESS

City Opera’s own revival may hinge on thrift-shop sales, kindness of strangers

Even if bankruptcy court gives OK, company’s future remains in doubt BY AARON ELSTEIN

ven if the New ensemble, its future is theater world—and that crisis to pay for an bequests, $1.9 million in court filing. York City dubious. it has only a $5 million expensive director, ticket sales and a 40% The New York state EOpera’s new New management endowment. The com- Gerard Mortier, and lav- jump in sales (to $1.2 attorney general’s office benefactors persuade a says it will lose money pany had more than $50 ish productions that million) at the compa- isn’t buying it. bankruptcy court judge producing operas for the million early last decade, drew few ticket buyers. ny’s East 23rd Street Projections “may have this week to let them foreseeable future— but its board raided the The losses would be thrift shop, its backers simply been pulled out revive the failed which is common in the fund during the financial covered by $8 million in wrote in a bankruptcy of the air,” the office wrote in comments for the court, while pan- ning its proposal to shell out $300,000 to Gene Kaufman, an architect who also bid for the ensemble’s assets, calling the payment Thanks “greenmail.” The renamed NYCO Renaissance would be to our led by Roy Niederhoffer, a hedge-fund manager who plays violin and is Business reported to keep a Steinway grand piano in his office. Niederhoffer was a member of City Customers. Opera’s pre-bankruptcy board, joining after the endowment debacle. Michael Capasso, the “Highest in former head of New York’s Dicapo Opera Theatre, which closed in Customer 2013 after 33 years, would be its artistic Satisfaction with director. The revamped City Opera would exist as Small Business a wandering minstrel, playing at Jazz at Lincoln Banking in Center’s Rose Theater, and in venues around the Northeast town, including the Culture Shed under con- Region” struction at Hudson Yards. Even if the curtain – J.D. Power rises as planned Jan. 20 on its first production in nearly three years— Tosca at the Rose Theater at Jazz at Lincoln Center—the new City Opera won’t be the fixture it was under famed soprano Beverly Sills. Niederhoffer’s group assumes it will play before small audiences. An attorney for NYCO, Gerard Catala- nello, said the new regime is focused on avoiding the mistakes of TD Bank, N.A. | TD Bank, N.A. received the highest numerical score in the past and wouldn’t the northeast in the proprietary J.D. Power 2015 Small Business Banking Satisfaction make commitments it StudySM. Study based on 8,086 total responses, measuring 8 ﬁ nancial institutions in the can’t afford. “If the com- northeast (CT, ME, MA, NH, NJ, NY, PA, RI, VT) and measures opinions of small business pany has the means to customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in July-August 2015. grow, it will grow,” he Your experiences may vary. Visit jdpower.com said. “If it doesn’t, it won’t.” Ⅲ

10 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0011-NAT-CCI-CN_-- 1/7/2016 6:32 PM Page 1

AGENDA VIEWPOINTS

Don’t believe what they say, NYC’S LARGEST FAST-FOOD CHAINS believe what they do 2015 Food chains with low-wage workers are expanding in the city, BRAND STORES CHANGE even as critics warn of dire outcomes from minimum-wage hikes Dunkin’ Donuts 568 +6% Subway 444 -4% ON THE WEBSITE of Jan. 1, 2016, and to $15 in 2018 in the the Empire Center five boroughs. Forging ahead were Starbucks 307 +10% for Public Policy are franchisees as well as large corpo- Baskin-Robbins 214 +2% videos in which a rate owners like Starbucks and series of business Chipotle. Burger King 85 +5% owners explain the Actually, the result should not be Popeye’s 82 +5% dire consequences a surprise. The vast majority of eco- Domino’s 73 +1% of an increase in the nomic research in recent years has GREG DAVID minimum wage— found no job loss from increases in Golden Krust 59 -15% cutbacks in hours, the minimum wage. Chipotle 58 +15% fewer jobs, sharply higher prices. By the way, threats in the Empire The question that needs to be asked, Center videos of steep hikes in KFC 47 -15% as Gov. Andrew Cuomo campaigns prices may also not be true. New Source: Center for an Urban Future for $15-an-hour base pay in the York Times economics reporter Neil state, is whether the busi- Irwin listened to the nesses should be believed. investor calls of several Empire Center videos lying? sense for New York to boast one of The answer is probably fast-food companies last Probably not intentionally. The idea the highest minimum wages in the not. $15 year—including local of paying $15 an hour instead of the country; Cuomo is wrong to insist Consider the expansion MINIMUM favorite Shake Shack—and current $9 seems scary. But what is the state be No. 1 by a wide margin. of fast-food restaurants in WAGE for fast- found that all expected to important is what businesspeople Unfortunately, the Empire the city in 2015, according food workers implement only small price do, not what they say. Center videos and the no-no-no to the annual chain-store in 2018 increases in 2016. The mes- This is not to say $15 an hour in opposition of the upstate business survey released last month sage to investors from the the city is a good idea. Studies of community have undermined cred- by the Center for an Urban Future. executives was that the companies recent small minimum-wage hikes ible opposition and efforts to find a Seven of the 10 largest operators in could manage the pressure of high- may not show job losses, but that compromise on the issue. Ⅲ the city expanded last year even er labor costs. A few warned of a doesn’t mean there won’t be harm- though they knew their minimum- modest reduction in profit margins. ful consequences from raising the GREG DAVID blogs regularly at wage rate would jump to $10.50 on Are the businesspeople in the wage so much, so quickly. It makes CrainsNewYork.com.

of the past decade, from stores and increased The mayor must do more Coney Island to downtown financial incentives to Bill de Blasio’s East New York housing plan does not go far enough Brooklyn to Greenpoint/- prevent displacement of Williamsburg, left residents local small businesses. BY ERIC L. ADAMS AND RAFAEL L. ESPINAL JR. feeling they were steam- The law should also rolled in the pursuit of document the communi- progress. ty-development meas- e face an exceptional able housing, and Mayor Bill de The city’s plan for East ures that the city has laid challenge in New Blasio’s vision for creating or pre- New York should take ADAMS out. Issues that accompa- York City: to preserve serving 200,000 affordable units in into account historical ny population growth, our communities as the next decade is the forward- inequities and the long- such as access to jobs, placesW our neighbors can afford to thinking approach required to term impact on the approx- sufficient school seats, call home. The success of the past overcome our housing crisis. imately 200 rezoned blocks quality open space and several decades—coming back from It also seems that rezoning as well as the surrounding reliable transportation, the brink of bankruptcy in the 1970s neighborhoods such as East New area. We propose: should not be left to the and from drug-fueled crime in the York—the first of a proposed 15 Greater resources to whims of annual budget 1980s—has created value in neigh- efforts across the five boroughs— preserve existing affordable fights. A post-approval borhoods that seemed forever lost. will be a vital part of the solution, housing, including anti- follow-up panel with With the real estate market eager critical to incentivizing the devel- displacement advocates and ESPINAL community representa- to take advantage, we must ensure opment of homes for low-income legal services; tion will help ensure that that the popularity of our brand and middle-class families. The More very-low- and promises are kept. translates into prosperity for all question is whether the plan does low-income housing through other We have to do something, but we New Yorkers, and that the residents enough to protect East New York’s means, such as using the air rights of have to do it right. East New York who held down blocks in the tough current residents. faith-based properties; cannot afford to see its buildings years can thrive there as the next The city has made a concerted Setting aside half of new hous- grow while opportunities for resi- chapters are written. effort to develop a complete plan for ing for local residents or former res- dents shrink. It will require Nowhere is this clearer than in the neighborhood’s future. That idents who were displaced; unprecedented investment from Brooklyn, a symbol of urban renew- said, as the table-setter for other Additional land-use measures the public and private sectors, not al and the epicenter of gentrifica- rezoning efforts, this proposal can that encourage developers to include to mention a level of creativity that tion fears. No corner of the borough do more. A standard must be set deeper and more flexible bands of government has historically failed is off the table for developers, lead- that empowers communities to affordability in new housing; to show. We believe this City Hall ing to higher and higher land valua- deepen the affordability of future A mandated minimum of and its leadership are up to facing tions. The threats of landlord development and improve local family-size units in all new afford- that task with us. Ⅲ harassment and increased rents that resources. able projects, ensuring developers have accompanied shifts like these Brooklynites have spoken loud build more than studios and Eric L. Adams is the Brooklyn borough have locals rightfully concerned. and clear: Change must benefit every one-bedrooms; president. Rafael L. Espinal Jr. represents BUCK ENNIS, NEWSCOM, AP IMAGES But they also want more afford- aspect of the community. Rezonings A restriction on big-box retail East New York in the City Council.

JANUARY 11, 2016 | CRAIN’S NEW YORK BUSINESS | 11 20160111-NEWS--0012-NAT-CCI-CN_-- 1/7/2016 6:09 PM Page 1

AGENDA VIEWPOINTS

Should the state set wages? Readers opine on the pay floor, weed, park development and ferries

Minimum wage, WHO IS being arrested on the maximum disagreement streets? Low-level marijuana Re “Cuomo urges de possession has been a sum- Blasio critics to join ‘cru- mons for a very long time. The sade’ for $15 wage” only people being arrested are (CrainsNewYork.com): the same who are most likely This has very little to do to be shot. Also, it’s been with whether one is liber- legalized in New York City for al or conservative. The use at home since 1975. idea is not founded on JACOB MARTIN sound economic princi- ples. In our society, wages should be Yes, housing at Brooklyn Bridge Park determined by supply and demand. Re “To pay for Brooklyn Bridge Park, There is no place for edicts. don’t build any more than neces- When wages are determined arti- sary” (Editorial, Nov. 17): ficially, all sorts of negatives result. When has the government ever Prices go up, so the consumer buys had too much money?! It doesn’t less—elasticity. Each employer will happen. Things always cost more be forced to reduce staff, so this than they think. Plus, buildings edict will be counterproductive. If were always part of the deal. the retailer sells less, a whole chain Now they need to start fixing the of workers is affected negatively— parts they got wrong, like the terri- the manufacturer, the distributor, ble gravel, the bike bumps (riding a the trucker, and on and on. bike there is a horrible experience) When a union bargains for more and the broken Squibb Park Bridge wages, it is usually based on favorable (which has been closed for more PROMOTE. data: reasonable net income, a rea- than a year). Why not? sonable balance sheet and so forth. SEAN S. What is being advocated here is fool- For more information contact hardy. Here it is being mandated that Wanted: Seaworthy operator Krista Bora, Reprint Account Executive [email protected] • tel 212.210.0750 one pays more even if the operation is for Rockaway-to-Manhattan ferry in debt or already operating at a loss. As a Rockaway resident and Not a very sensible idea. ferry/transportation advocate, I was LES THOMPSON disappointed to read that Seastreak Manhattan was not even mentioned as a con- tender for the Rockaway-Brooklyn- ANY CORPORATION that cannot afford Manhattan ferry route (“East Coast the $2 or $3 increase being proposed vs. West Coast in ferry fight,” now should close. It is being kept Nov. 30). alive artificially by these low wages. Seastreak operated that route We do not live in Vietnam. after Hurricane Sandy for more than BRENDA two years with an on-time performance rate of better than 95%. The OK, SO WE RAISE WAGES to $15 an hour. ferries were clean, employees wore What happens to the wages of the uniforms, bathrooms were spotless folks already making $15? How about and not one police incident the person making $17? Guess occurred. I do not know of one com- what—they all will want raises. plaint from a Rockaway resident Where in the hell is that money about the ferry operator. coming from? Because part of the route travels VIRGIL LASSITER in the ocean—and passes Coney Island, which may have large swells Roll back medical marijuana in winter—it’s important to have the People are still being arrested for proper vessel. Seastreak has them, as marijuana possession on the streets. well as the experience of operating It’s hard for me to look at medical in open water. marijuana as anything other than a If the city can’t come to terms on free pass for rich people who want to a competitive price with Seastreak buy and sell drugs while keeping the and goes with another operator, I jails just as full. I’m not a fan. Pass request that a demo be run from real legalization or don’t even bother Wall Street to Rockaway with elect- (“Step inside New York City’s mari- ed officials, community-board juana black market in the era of members and concerned citizens legalization,” Jan. 4). onboard before any contract is Drunk Yankees fans are bad signed. enough. Now they’ll be high, too. JOE HARTIGAN SUSAN DONOVAN Queens

CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send op-eds of 500 words or fewer to [email protected]. Please include the writer’s name, company, address and

AP IMAGE telephone number.

12 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0013-NAT-CCI-CN_-- 1/7/2016 6:10 PM Page 1

AGENDA THE LIST NEW YORK AREA’S TOP SBA LENDERS Ranked by dollar value of loans in fiscal 2015

DOLLAR VALUE DOLLAR VALUE NUMBER NUMBER OF LOANS OF LOANS PERCENT OF LOANS OF LOANS PERCENT RANK LENDER IN FISCAL 2015 IN FISCAL 2014 CHANGE IN FISCAL 2015 IN FISCAL 2014 CHANGE 1 Newbank $124,036,000 $113,626,000 +9% 110 110 0% THE SCOOP 2 Empire State Certified Development Corp. (CDC-504)1 $119,320,000 $143,925,000 -17% 128 130 -2% 3 JPMorgan Chase Bank $71,010,100 $54,372,800 +31% 634 526 +21% NEW KIDS 4 Newtek Small Business Finance Inc. $46,991,100 $19,118,000 +146% 41 25 +64% IN TOWN 5 TD Bank $46,070,800 $26,931,025 +71% 187 104 +80% NEWCOMERS punctuate 6 Capital One Bank $29,138,800 $10,232,500 +185% 72 35 +106% Crain’s list of institutions making the U.S. Small 7 Woori America Bank $23,850,000 $15,310,000 +56% 22 19 +16% Business Administration- 8 Wells Fargo Bank $22,577,400 $18,209,500 +24% 98 49 +100% backed loans to New York- area enterprises. Eighteen 9 BBCN Bank $17,735,000 $20,285,000 -13% 41 33 +24% of this year’s 50 lenders 10 New York Business Development Corp. $17,593,000 $15,354,300 +15% 33 35 -6% are new, with six not even offering loans a year ago. 11 Live Oak Banking Co. $16,994,000 $22,646,000 -25% 16 16 0% Mergers, dropouts and a 12 Bridgehampton National Bank $16,585,000 $20,544,000 -19% 19 26 -27% globalized economy that wants to tap into the New 13 New Millennium Bank $16,119,000 $3,100,000 +420% 22 2 +1,000% York market are driving 14 Cross River Bank $13,096,400 $22,342,000 -41% 18 18 0% the change. “In the old 15 Empire State Bank $12,151,100 $3,822,500 +218% 15 7 +114% days, lenders were more New York-based,” said 16 Manufacturers & Traders Trust Co. $11,701,400 $17,704,600 -34% 117 100 +17% Christopher Dalton, 17 KeyBank $11,560,700 $8,469,000 +37% 26 12 +117% lender relations specialist in the SBA’s New York 18 East West Bank $11,136,000 $5,129,000 +117% 12 6 +100% District. “Now the foot- 19 1st Constitution Bank $10,660,000 $4,740,000 +125% 12 11 +9% print is larger. We get a lot of lenders from California, 20 Celtic Bank Corp. $9,781,500 $14,879,600 -34% 57 32 +78% Georgia, New Jersey and 21 Business Initiative Corp. of New York (CDC-504) $8,846,000 $9,944,000 -11% 6 9 -33% elsewhere.” Usually, an improving 22 Citibank $8,478,200 $11,683,000 -27% 96 76 +26% economy would lessen the 23 Flushing Bank $8,436,000 $1,831,000 +361% 13 5 +160% need for SBA guarantees. 24 Wilshire Bank $7,797,500 $6,305,000 +24% 23 18 +28% But as the agency has expanded its outreach, 25 Santander Bank $7,604,400 $9,995,800 -24% 75 102 -26% banks are closing more of 26 BCB Community Bank $6,995,000 $400,000 +1,649% 3 2 +50% these loans—an additional 400 to New York-based 27 Bancorp Bank $6,833,000 n/a n/a 3 n/a n/a businesses in this past 28 Utah Community Bank $6,113,300 n/a n/a 7 n/a n/a fiscal year—and the trend is expected to continue. 29 Noah Bank $5,565,000 $103,195,000 -95% 18 112 -84% “We’re helping under- 30 Savoy Bank $5,402,000 n/a n/a 4 n/a n/a served communities, and working with more women, 31 BankUnited $5,319,700 $7,894,400 -33% 3 2 +50% veterans and minorities. 32 Indus American Bank $5,224,000 $3,500,000 +49% 2 1 +100% You may also see loans in 33 Customers Bank $5,146,000 $150,000 +3,331% 9 1 +800% industries that aren’t traditionally bankable, like 34 Metro Bank $5,000,000 $4,400,000 +14% 1 2 -50% startups,” said Beth 34 Metro City Bank $5,000,000 n/a n/a 1 n/a n/a Goldberg, director of the SBA’s New York District. 1 36 Empire State Certified Development Corp. $4,905,400 $5,476,400 -10% 37 44 -16% Startups can have a 37 Stearns Bank $4,756,000 $1,153,000 +312% 10 2 +400% hard time getting traditional loans because their lim- 38 Pacific Western Bank $4,405,000 $10,495,000 -58% 2 5 -60% ited financial histories 39 Independence Bank $4,040,000 $150,000 +2,593% 5 1 +400% make it difficult for banks to assess their ability to 40 Grow America Fund Inc. $3,751,000 $3,535,000 +6% 5 5 0% repay. Their growth is 41 Ridgestone Bank $3,661,000 $1,580,000 +132% 3 1 +200% important to the contin- 42 Northwest FCU $3,320,000 $350,000 +849% 3 1 +200% ued diversification of the city’s economy, yet the 43 Northeast Bank $3,157,000 n/a n/a 4 n/a n/a financial needs of these 44 Community Reinvestment Small Business $3,001,000 $911,000 +229% 3 4 -25% small operations are often in the $50,000 range. 45 Pacific City Bank $2,920,000 $2,352,000 +24% 5 4 +25% This makes them ideal 46 Citizens Bank $2,904,500 $1,121,500 +159% 16 9 +78% candidates for SBA loans. “An SBA guarantee 47 Square 1 Bank $2,769,000 $5,950,000 -53% 2 3 -33% enables banks to have 48 T Bank $2,755,000 $1,760,000 +57% 2 1 +100% more customers,” said Goldberg. “It encourages 49 Bank of the West $2,210,000 n/a n/a 1 n/a n/a people to walk through 50 Spring Bank $2,159,000 $2,740,000 -21% 3 1 +200% the door if they have an option to take out a loan.” The U.S. Small Business Administration’s New York District includes New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, Ulster and Westchester counties. Rankings are for the fiscal year ended Sept. 30, 2015. All figures are for banks’ 7(a) loans (loans to businesses unable to secure financing on reasonable terms through normal lending chan- — GERALD SCHIFMAN nels) unless otherwise noted as 504 loans (long-term, fixed-rate financing for major fixed assets) for certified development companies (CDCs). 1-As a CDC, Empire State Certified Development Corp. offers both 504 loans and 7(a) loans and thus appears twice on the list. n/a-Not applicable. These banks did not make loans that year.

JANUARY 11, 2016 | CRAIN’S NEW YORK BUSINESS | 13 20160111-NEWS--0014-NAT-CCI-CN_-- 1/7/2016 6:10 PM Page 1

AGENDA THE LIST NY AREA'S LARGEST SBA-GUARANTEED LOANS Biggest loan approvals in fiscal 2015, ranked by total amount

TOTAL SBA/CDC BORROWER’S THIRD-PARTY LENDER/ THIRD-PARTY LENDER’S BORROWER/LOCATION LOAN AMOUNT SHARE OF LOAN1 BUSINESS TYPE CERTIFIED DEVELOPMENT COMPANY1 SHARE OF LOAN

Sita Ram $7,868,000 $3,001,000 Hotels and motels Aileron Capital Management $4,867,000 1 Bronx Empire State Certified Development Corp.

House Calls Home Center $7,262,000 $3,038,000 Home health care Chase Bank $4,224,000 2 Brooklyn services Empire State Certified Development Corp.

Southern Telecom Inc. $6,833,000 $3,083,000 Electronic appliance Bank of America $3,750,000 3 Brooklyn wholesalers Empire State Certified Development Corp.

YS Farm Country Corp. $6,570,000 $2,570,000 Supermarkets Shinhan Bank America $4,000,000 4 Brooklyn Empire State Certified Development Corp.

OnForce Solar Inc. $6,560,000 $2,960,000 Specialty trade Bank of America $3,600,000 5 Bronx contractors Business Initiative Corp. of NY

The Lobster Place Inc. $6,487,000 $2,927,000 Seafood wholesalers Citibank $3,560,000 6 Bronx Empire State Certified Development Corp.

Bruno Frustaci Contracting Inc. $5,895,000 $2,660,000 Residential remodelers M&T Bank $3,235,000 7 Brooklyn Empire State Certified Development Corp.

CL Sales Retail Corp. No. 2 $5,618,500 $2,535,000 General merchandise HSBC Bank $3,083,500 8 Bronx stores Empire State Certified Development Corp.

A&A Meat & Produce Corp. $5,000,000 n/a Supermarkets n/a n/a 9 Manhattan Newbank

Centurion APS $5,000,000 n/a Physicians’ offices n/a n/a 9 Manhattan TD Bank

FAD 2300 Food Corp. $5,000,000 n/a Supermarkets n/a n/a 9 Queens Newbank

TLC Veterinary $5,000,000 n/a Veterinary services n/a n/a 9 Staten Island Metro Bank

1329 Beach Realty $4,500,000 n/a Supermarkets n/a n/a 13 Queens Newbank

Putul Distributors Inc. $4,456,000 $2,056,000 Seafood wholesalers Chase Bank $2,400,000 14 Queens Empire State Certified Development Corp.

Harry Jho $4,430,000 n/a Lawyers’ offices n/a n/a 15 Manhattan Woori America Bank

Umiya Hospitality Inc. $4,409,500 $1,222,000 Hotels and motels Square 1 Bank $3,187,500 16 Queens Empire State Certified Development Corp.

55 Flatbush Rockwell $4,225,000 $4,225,000 Liquor stores n/a n/a 17 Brooklyn New Millennium Bank

Knights Collision Experts Inc. $4,200,000 n/a Motor-vehicle towing n/a n/a 18 Brooklyn BCB Community Bank

Manhattan Wines and Spirits Merchants Inc. $4,200,000 n/a Liquor stores n/a n/a 18 Manhattan Empire State Bank

Lexington Plastic Surgeons $4,092,500 $1,847,000 Physicians’ offices Wells Fargo Bank $2,245,500 20 Manhattan Empire State Certified Development Corp.

The Lodging Conference $4,007,000 n/a Real estate n/a n/a 21 Manhattan conferences Capital One Bank

Canal Furniture Corp. $3,919,000 $1,769,000 Home-furnishing Wells Fargo Bank $2,150,000 22 Manhattan wholesalers Empire State Certified Development Corp.

2076 Hylan Blvd. Realty $3,885,000 n/a Physicians’ offices n/a n/a 23 Staten Island Pacific Western Bank

Street Denim Inc. $3,873,000 $1,748,000 Wholesale trade agents Bank of America $2,125,000 24 Queens and brokers Business Initiative Corp. of NY

Kissena Glatt Farms $3,800,000 n/a Supermarkets n/a n/a 25 Queens Newbank

The U.S. Small Business Administration’s New York district includes New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, Ulster and Westchester counties. Ratings are for the fiscal year ended Sept. 30, 2015. The top 25 loans were approved either under the 504 loan program or the 7(a) loan program. The 504 loan program provides growing businesses with long-term fixed-rate financing for major fixed assets, such as equipment, land and buildings. The 7(a) loan program is the SBA’s most-used nondisaster financial assistance program to small businesses because of its flexibility in loan structure, variety of loan proceeds uses and availability. In cases of tied figures in the total loan amount, borrowers are listed alphabetically. n/a-Not applicable. 1-The certified development company listed for each loan is the CDC that handled the loan processing (504 loans only). Source: U.S. Small Business Administration. Additional research by Gerald Schifman.

14 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0015-NAT-CCI-CN_-- 1/8/2016 1:02 PM Page 1

SMALL BUSINESS | THE GIG ECONOMY

llison Hemming has put her faith in broader audience of job seekers and clients. freelancers since the dawn of the so- Her process for this evolves all the time. called gig era. At her Flatiron-based “Every time we meet with her on a different staffing firm, the Hired Guns, she search, I can see her trying to figure out anoth- Ahand-picks ambitious digital and creative er way, another angle for us,” said Suejin Yang, freelancers and sets them up with companies vice president of digital entertainment and that need designers, developers, marketers digital general manager at Time Inc.’s People and product managers. and Entertainment Weekly. Yang found her cre- But her efforts are not done when she makes ative director through Hired Guns. In a previ- a match. By mentoring the freelancers and ous job, at NBCUniversal’s Bravo Network, managing their careers, she hopes to render a Yang overhauled the channel’s website with a whole new work world. In it, freelancers act as temporary team assembled by Hemming. talent, and she is their super-agent. One important method for successful Hemming, 47, founded the company in 2000 employee-company matches has been gaining after working as the head of marketing for a access to hiring managers, who, Hemming lifestyle magazine called POV. She noticed that believes, are the only ones with the authority recruiting the right freelancers there was diffi- and firsthand knowledge to hire correctly and cult because no one was helping freelancers quickly. (She has turned down business when market themselves to companies like hers. access wasn’t granted.) “There needed to be an organizing principle “She’s created a good filter of extracting wrapping around freelancers as a concept,” from hiring managers what they’re really look- Hemming said. “The idea would be, ‘Come to ing for—and, more important, what they’re not ALLISON HEMMING wants her company to be us and we’ll be home base for all of your free- looking for,” said David Brinker, president of more like a talent agency than a staffing firm. lancing needs.’” the New York Post, who says he has brought on In the 15 years since launching, Hemming at least a half-dozen full-time employees and has expanded her agency to include full-time freelancers using Hemming’s agency. job placement and the formation of full teams to run projects, such as website relaunches for Network effect various companies. In 2014, her revenue Hemming interacts with so many job seek- reached $7.5 million, up 25% from 2013 and a ers and hiring managers that she uses their big jump from the first year’s bottom line of feedback to improve workflow. Her 12-person Repping $500,000. Hired Guns is still a boutique firm team is split between client- and talent-facing compared with the nation’s two biggest cre- roles, both aided by sourcing associates. ative staffing firms, Creative Circle and Freelancers and friends drop in at the Flatiron Aquent, whose combined 2014 revenue of $385 office, where flexible walls can be moved to million makes up a third of the market, offer privacy and open space for collaboration. NYC’s star according to Crain’s Staffing Industry Analysts. It’s not unusual for some of these contacts to Hired Guns’ growth has come from grooming moonlight for Hemming herself. “It’s almost a now-25,000-strong talent roster, honing a like Airbnb,” she said. She might engage free- hands-on approach to matching these workers lancers with extra work in short-term gigs at freelancers with companies, and staying in touch with her her agency, such as coaching others in her tal- clients—mostly finance, media and technology ent pool. Starting this year, freelancers will be THE HIRED GUNS PLAYS MATCHMAKER firms. All this work is a pleasure to Hemming. able to formally book one-on-one coaching “I love working with my people. I love sessions with experienced mentors in her net- TO THOSE LOOKING FOR WORK working with my clients because my clients work, forgoing the previously informal are my people, too,” she said. process. Her freelancers also work for her AND COMPANIES SEEKING Though clients like the company enough to directly, helping her team track down candi- SOMETHING MORE THAN come back again and again, Hemming’s hiring dates for job openings in their fields. Hired process wasn’t fast enough for some of them. Guns’ new website, launching this year, was JUSTATEMPORARY HIRE So last year, the company invented its own built entirely by Hemming’s network. version of the “speed date.” Hemming has thrown gigs and advice to “We invite our clients to come into our office Web designer Colin Ochel, 42, since 2002; he BY CARA EISENPRESS and do the interviews, like on-campus recruit- currently lands about a quarter of his jobs ing,” she said. After speed dates, clients have a through Hired Guns. Years ago, she persuaded close rate (the portion of searches that end in a him to present himself as a user-experience hire) of 80%. That’s because Hemming has the expert rather than a jack-of-all-Web-trades. manager vet candidates before the session and “She really helped me define who I am and asks everyone to put down their phones and what rates I get,” Ochel said.

focus. The sessions help hiring teams quickly He got more work after that. Working 11½-

appreciate the con- hour days, he now aims to bill about 4,000 crete potential of the hours a year, twice that of a 9-to-5 worker. They know me so well, they know “ employee behind the His relationship with Hired Guns minimizes if a job will work for me,”said one abstract résumé. his unbillable hours looking for work. “They “ Clients “come out, and know me so well, they know if a job will work freelancer.“I don’t waste my time they feel alive with for me,” he said. “I don’t waste my time with productivity. They say, [the agency] at all.” ‘OK, I can make a deci- Nearly half of Hired Guns’ revenue now sion today.’” Without comes from full-time placement. But Hemming the speed date, the close rate is about 50%. still holds close her founding premise of steer- Hemming’s main tool for recruiting is a ing the careers of creative freelancers. Still, she newsletter called the Gig Alert, which lists conceded she has some distance to go before custom-written job postings, carefully styl- she becomes the Ari Gold for digital freelancers. ized to appeal to the right hire. For example, “I thought by 2015, we’d be the William an ad for a programming job would be written Morris Endeavor [the renowned global talent using the vernacular of a digital employee. But and literary agency] of the digital creative her real innovation is bringing the attention class,” she said. “I think we’re maybe five, Ⅲ BUCK ENNIS and judgment of an executive-level search to a probably 10 years from that.”

JANUARY 11, 2016 | CRAIN’S NEW YORK BUSINESS | 15 20160111-NEWS--0016,0017-NAT-CCI-CN_-- 1/8/2016 3:13 PM Page 1

HEALTH CARE | INNOVATION 3-D printers helped give Zeesy Stern a new jaw

To shape the future of surgery, New York doctors press Ctrl+P BY CAROLINE LEWIS

eesy Stern lay unconscious on an Medical-grade printers are expensive, some and doctors need to spend extra time planning operating table at NYU Langone costing upward of $200,000. But one printer the surgery and designing the tools they’ll need Medical Center as a surgeon can make an infinite number of objects cus- to execute it. removed a section of her jaw where tomized to each individual’s anatomy. And the The health industry is also mired in regula- a golf-ball-size tumor had begun to cost of printers is starting to come down. A tory, cultural and institutional challenges that displaceZ the teeth on the left side of her mouth. Philadelphia company called BioBots made preclude rapid change. The pioneers in this Another doctor, meanwhile, worked to extract waves last year by releasing a $10,000 bioprint- field are finding that insurance companies, as a piece of her fibula that would be fitted like a er, which it offered for $5,000 to scientists for well as patients and doctors, must be made to puzzle piece into the space where her jaw testing. understand the value of 3-D-printed devices in once was. In Stern’s case, her doctors designed a metal order to factor them into reimbursement rates. The goal was to remove the growth and cre- plate and plastic surgical guides—indicating A priority for 3D Systems is conducting studies ate a new, fully functioning jaw, a feat that where to cut or drill—based on a digital 3-D with institutions to prove that 3-D printing can once took three operations over 18 months and model of her skull made from CAT-scan improve health outcomes and save money. left some patients with trouble chewing and images. The pieces were manufactured by 3D disfigurement. But the doctors at NYU Langone Systems, a South Carolina company whose AS DOCTORS HAVE FOUND MORE USES for 3-D printing had pioneered a new approach, one they founder, Chuck Hull, patented the first 3-D over the past decade, they have influenced the dubbed “jaw in a day.” The tool that made it printer in 1986. Though 3D Systems would not materials developed by companies such as 3D possible: not a scalpel, but a 3-D printer. disclose its costs, the plastic in each of Stern’s Systems and Stratasys, the parent company of “It’s a paradigm shift in the way of doing surgical guides retails for just a few dollars. Brooklyn-based MakerBot, which manufac- surgery,” said Dr. Jamie Levine, chief of micro- “That’s the whole secret of 3-D printing,” tures lower-cost desktop 3-D printers. surgery at NYU Langone, and one of the sur- said Katherine Weimer, vice president of A few years ago, there were only plastics, geons who worked on Stern. “There was which could be printed into custom a need for it to be more precise.” prosthetics and manipulated into The Institute for Reconstructive THE GENIUS OF 3-D PRINTING patient-specific surgical tools. Then, Plastic Surgery at NYU Langone is one of titanium powder was loaded into 3-D a growing number of New York hospital IS THAT CUSTOMIZED OBJECTS printers to produce custom implants. departments that have embraced the use ARE NOT HARD TO MAKE. Now mixed materials are opening up of 3-D printing, in which materials such new possibilities. as plastic or titanium powder are “IT’S A PARADIGM SHIFT IN The Feinstein Institute for Medical exuded, layer by layer, to create objects: Research on Long Island is experiment- jewelry, kitchen utensils or, say, a new THE WAY OF DOING SURGERY” ing with something MakerBot calls trachea. limestone. (See story, Page 19.) The The surgeons at NYU Langone use the material is actually a composite of printers to better plan and execute complex medical devices at 3D Systems. “Complexity organic plastic and calcium carbonate that procedures like Stern’s with more precision is free.” together mimics bone. More-flexible materials and predictability, ultimately saving hours in Despite the potential for innovation, med- that can act as other body parts are also in the the operating room and $20,000 to $30,000 per ical 3-D printing, as Stern learned, is only just works. reconstruction. beginning to be adopted in New York. Stern To gain FDA approval, any 3-D-printed The promise of 3-D printing is a world of sci- received her initial diagnosis from an oral sur- material or device that comes into contact with ence fiction come to life: Headlines from 2015 geon who was unaware of 3-D printing’s patients must be capable of being sterilized. It included the first 3-D-printed nose in the U.S., advances, telling her that her only option was a can be a challenging process. created by a doctor at the New York Eye and Ear lengthy, three-surgery ordeal. During much of “Some materials go through something in Infirmary of Mount Sinai. that time, he said, Stern would be left with a the 3-D printing process that makes them non- Last year also saw Food and Drug seriously diminished set of teeth. sterile,” said Weimer of 3D Systems. But she Administration approval for 3-D-printed pills The prospect gave the usually calm 38-year- said FDA approval for 3-D-printed products is and vertebrae. Designs for bionic hands are old special-education teacher an uncharacter- becoming more common. now available for free on the Internet, and istic dose of anxiety. Some New York hospitals are hoping to researchers from around the world are experi- “If I could get through one surgery, I would speed up the pace of adoption—and plant the menting with organs printed from living cells. still have to get through the next and the next,” seed for more homegrown innovation—by cre- The genius of 3-D printing is that, unlike said Stern, thinking back on the prognosis 18 ating in-house 3-D printing centers where traditional manufacturing, complex objects are months later in her apartment on the Upper experienced users can assist novices. not more expensive to make; they do not West Side. “My life would have been destroyed Within hospitals, 3-D printing capabilities require unique molds or multiple machines. for a long time.” can vary widely by department. Two medical The cost of any object is determined simply by The cost of the machines is only one hurdle units at NYU Langone have their own printers, the amount of printing material used and the to wider adoption of 3-D printing. The learning while Levine and his team collaborate with 3D time needed to design it on a computer. curve of mastering the design software is steep, CONTINUED ON PAGE 18

16 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0016,0017-NAT-CCI-CN_-- 1/8/20163:14PMPage2

BUCK ENNIS AUR 1 2016 11, JANUARY doctors pioneered“jaw inaday” surgery. mandible andwhite surgicalguide.Thetwo manipulate acustom-made, 3-D-printed pink DR. JAMIELEVINE | RI’ E OKBUSINESS YORK CRAIN’S NEW lf)andDr. DanielCeradini (left) | 17 17 20160111-NEWS--0018-NAT-CCI-CN_-- 1/8/2016 3:16 PM Page 1

HEALTH CARE | INNOVATION

Systems, using the company’s printers and to hold Stern’s new jaw in place. software. Other departments don’t use the Before 3-D printing entered the equation, technology at all. there was a lot more “eyeballing,” according to Dr. Oren Tepper, director of craniofacial surgery Levine. He couldn’t go into the operating room at Montefiore Medical Center in the Bronx, has with a metal plate the exact size and shape he been using the technology since 2007 and, like needed. Instead, he had to manipulate the Levine, outsources his printing needs to 3D standard pieces of metal he had on hand while Systems. Now, however, he is in talks with the patient was sedated. Montefiore about creating a 3-D printing center “As you can imagine, sitting in the O.R. with on-site that would be widely accessible to physi- a set of pliers to make [the plate] fit the jaw is cians at the hospital. somewhat time-consuming,” said Dr. Daniel “I think the main limitation of 3-D printing Ceradini, associate director of microsurgery at is not functionality or cost but awareness of NYU Langone, who also helped develop the what can be done,” Tepper said. “The majority jaw-in-a-day procedure. If the placement of of health care workers don’t even have the the plate or jaw implant were just a few mil- knowledge that this technology exists.” limeters off, the patient could suffer. Into the jaw implant, the surgeons inserted STERN HERSELF WAS ONLY VAGUELY aware of 3-D the screws that would secure Stern’s new den- A 3-D MODEL of Zeesy Stern’s jaw from various angles printing before her diagnosis in March 2014 of a tures. For this, they used a drilling guide, which (above) was made using CAT scans. The images show the tumor mass on the left side of her jaw. The model was used benign but fast-growing tumor called an is really just a few centimeters of plastic that to design white surgical guides (above left) that doctors ameloblastoma. While researching second aids in the placement of a screw hole. Still, it’s a used to precisely fit bone from her leg into her jaw. opinions, she found Levine and his team of sur- piece of plastic that Levine and Ceradini insist geons at NYU Langone and was soon buoyed by makes all the difference by eliminating guess- the doctors’ confidence and the “after” pic- work that could lead to costly complications. she teaches at a preschool near Central Park. tures they showed her of previous patients. When Stern left the operating room after 12 “It’s always going to be a little stiff,” said Stern’s jaw- hours, disori- Stern, touching her jawline. She has a faint scar in-a-day sur- ented because on her throat where her feeding tube had been gery began “I THINK THE MAIN it was dark inserted, and a slight indentation to the left of early one May outside, her her chin—both of which she has to point out to morning in LIMITATION OF 3-D PRINTING sister turned people for them to notice. 2014. Her par- pale. “Is that Since her surgery, Stern’s doctors have ents and sister IS NOT FUNCTIONALITY OR Zeesy?” she continued to refine their methods. They are bided their COST BUT AWARENESS asked her now able to fit a patient’s dentures on the day time in the father. Stern’s of surgery. Soon, Ceradini said, the dentures waiting room OF WHAT CAN BE DONE” face was will be 3-D-printed as well. as the surgical severely swol- Within a decade, Levine predicts, 3-D team removed len. She had to printers will be as common as CAT scans, her jaw and cut the bone from her leg. spend a week in the hospital, being fed through which, in 1995, were just as novel as 3-D print- Careful digital planning and the a tube in her throat. Afterward, Stern spent two ers are now. His colleague Ceradini agrees. 3-D-printed cutting guides FedExed to them by months at her parents’ house, embarrassed to “Looking down the road 10 years, having a 3-D 3D Systems allowed her doctors to work simul- go outside because she had yet to receive her printer that’s in the office or in the clinic will taneously, knowing that everything would dentures. become the new mainstay,” he said, “as match up in the end. The implant carved from Three months post-op, though, she was opposed to having one company that prints her leg fit her jaw perfectly. The same was true back at work. Despite the chunk of bone miss- these things and FedExes them to you the next Ⅲ BUCK ENNIS, 3D SYSTEMS of the titanium plate the surgeons had designed ing from her leg, she was running after the kids day.”

18 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0019-NAT-CCI-CN_-- 1/8/2016 2:53 PM Page 1

HEALTH CARE | INNOVATION

THAT TINY OBJECT in Todd Goldstein’s hand is a trachea scaffold, made on a desktop 3-D printer, for a rabbit.

odd Goldstein is only a 29-year-old Ph.D. To print the trachea, Goldstein fit a cubical candidate, but he is working on the front desktop printer made by MakerBot with a syringe Beyond lines of medical research, using 3-D that spews bio-ink, a viscous material made of printers to produce bionic hands, living cells. The nozzle that comes standard on Timplants made of synthetic bone, living organs and the machine emits an organic plastic called PLA, a range of other creations. which creates the scaffold of the trachea. It’s just science A student at Hofstra Northwell School of a few dollars’ worth of plastic, said Goldstein, Medicine, he is working closely with Dr. Daniel holding the scaffold between his pointer finger Grande, director of orthopedic research at and thumb, and it can biodegrade in the human Northwell Health’s Feinstein Institute for Medical body, so just the organ is left. The same plastic Research on Long Island. Goldstein picked up the can be used to manufacture cutting guides like fiction coding he uses for 3-D printing online, and brims the ones doctors employed to reconstruct Zeesy with ideas for how hospitals can capitalize on the Stern’s jaw. (See story, Page 16.) Bionic hands, implants promise of the technology. The Feinstein Institute’s trachea experiments “A little engineering can go a long way,” said were sparked by an inquiry from a pediatric sur- made of synthetic bone. Goldstein, who prints trachea made of living cells geon in the health system who has patients suffer- Researchers in New York using a modified Replicator 2, a desktop ing from stenosis, a potentially fatal narrowing of 3-D printer made by Brooklyn-based MakerBot. the airway. are using 3-D printers Most of what Goldstein and Grande are doing to create the next is not completely novel, but they hope to turn Replacing body parts their 3-D printing skills into a business. The two “Before 3-D printing, there was no way we breakthroughs are currently in talks with North Shore Ventures, could make a trachea ideally fitted for a 2-year- in medicine the venture-capital arm of the health system for- old,” said Dr. Lee Smith, chief of the division of merly known as North Shore-LIJ, about creating pediatric otolaryngology at the Cohen Children’s a 3-D printing center to distribute their custom Medical Center. Or rather, he said, it would theo- BY CAROLINE LEWIS devices to physicians in the Northwell network retically have been possible, but would have taken and beyond. millions of dollars to engineer and there would The pair will start small, selling the custom drill have been no guarantee it would work. guides they’ve already started creating for dentists. The advent of 3-D printing has made it not only Each one costs about $2 to print, plus labor. possible to test medical solutions on the fly, but It will be several years at least before 3-D- practical as well. printed organs make their way into human bod- “Our little activity here at the Feinstein Institute ies. But with the ability to rapidly prototype and has spawned [about] 10 different hospital depart- test new designs, progress could come fast. ments coming to us asking us to help them use 3-D Rabbits have already received successful trans- printing technology,” said Grande. plants with the tiny trachea Goldstein and Goldstein said he envisions a new normal in Grande produced on one of the machines which doctors are able to print emergency implants MakerBot donated to their lab. of organs and bones, leaving no patient wanting for Many consider MakerBot’s printers, which cost new parts. “Imagine having a 3-D printer in every less than $2,000, well below standard for medical emergency room,” he said. “You could print purposes. But, Goldstein said, he has no idea why replacement parts on demand.” anyone would shell out 100 times as much for He marveled at the possibilities. “I think that Ⅲ BUCK ENNIS printers marketed to the medical field. would be a very nice future.”

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1 Business Term Loan has a term of fve years and is available in amounts between $250,001 and $1,000,000. Introductory rate is 2.00% for the frst six months following the opening of the account. Thereafter, the rate is fxed at 4.50% for four-and-a-half years. The Business Term Loan is fully amortizing and must be secured by a security interest of frst priority in business assets (other than real estate) or specifc equipment, as determined by City National Bank (“CNB”). Prepayment penalty equal to 2.00% of the amount prepaid applies in the frst year, and 1.00% of the amount prepaid applies in the second year, with no prepayment penalty thereafter. Ofer is in efect beginning October 1, 2015 through January 29, 2016. Business Term Loan is subject to credit approval and loan documentation acceptable to CNB. Ofer is available only in California, Connecticut, Nevada, New Jersey and New York. Ofer is not available to Small Business Administration guaranteed loans or lines of credit, asset-based or similar lines of credit, or any renewals, extensions, modifcations or refnancing of any existing CNB loans or lines of credit. To be eligible for this ofer (i) a signed and dated application on CNB’s approved form, as well as fnancial and other information requested by CNB, must be received no later than January 29, 2016, and (ii) if the Business Term Loan is approved, all payments must be automatically deducted from a CNB business checking or savings account and loan closing must occur by April 29, 2016. CNB business checking or savings account used for automatic payments is subject to the account’s standard transaction and other fees. Additional terms and conditions apply. Ask us for details.

City National Business Banking CNB MEMBER FDIC P034-35CL_CN_20160111.qxp 1/8/2016 1:41 PM Page 18

TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM EMPLOYMENT OPPORTUNITY PUBLIC AND LEGAL NOTICES

Nassau County (NC) – Office of the Nassau County Executive seeks qualified applicants for: Notice of Qualification of D. E. Shaw Alkali Notice of Qualification of Argentem Creek Portfolios Alternate III, L.L.C. Authority filed Holdings LLC. Authority filed with NY Dept. Director of Procurement Compliance: with NY Dept. of State on 5/12/15. Office of State on 11/13/15. Office location: NY location: NY County. LLC formed in DE on County. Princ. bus. addr.: 165 W. 91st St., Job Description: The Director of Procurement Compliance, reporting to a Deputy County 3/3/15. NY Sec. of State designated Apt. 8E, NY, NY 10024. LLC formed in DE Executive, will be responsible for administering all aspects of the County’s contracting processes. agent of LLC upon whom process against on 9/18/15. NY Sec. of State designated Duties include, but are not limited to: standardizing the County’s purchasing and contract admin- it may be served and shall mail process to agent of LLC upon whom process against istration; monitoring compliance with all applicable procurement guidelines, policies, and the principal business addr.: D. E. Shaw & it may be served and shall mail process requirements of federal, state and local laws; providing technical expertise to finalize the Co., L.P., 1166 Ave. of the Americas, 9th to: c/o CT Corporation System, 111 8th County’s public contract database, and expand the County’s access to municipal and State electronic Fl., NY, NY 10036, Attn: John Liftin, Ave., NY, NY 10011, regd. agent upon systems to verify the qualifications and standing of potential contractors. General Counsel, regd. agent upon whom whom process may be served. DE addr. process may be served. DE addr. of LLC: of LLC: 1209 Orange St., Wilmington, Job Requirements: Bachelor’s Degree in Business, Public Administration, or related field from The Corporation Trust Co., 1209 Orange St., DE 19801. Cert. of Form. filed with DE an accredited university or college; a minimum of five (5) years’ experience in public or quasi-public Wilmington, DE 19801. Cert. of Form. filed Sec. of State, 401 Federal St., Dover, sector procurement; a minimum of three (3) years’ experience in supervision of high level public with DE Sec. of State, 401 Federal St., Dover, DE 19901. Purpose: all lawful purposes. or quasi-public sector staff; certification as a Public Procurement Officer preferred. DE 19901. Purpose: all lawful purposes. Salary Range: $100,000 - $120,000 (commensurate with experience) plus full benefits. Notice of Formation of Mighty Industries Applicants must send resume and cover letter to Office of the Nassau County Executive, Att: Notice of Qualification of Midfield US LLC. LLC. Arts. of Org. filed with Secy. of State Edward Ward, DCE, 1550 Franklin Avenue, Mineola, New York 11501 no later than January 22, Authority filed with NY Dept. of State on of NY (SSNY) on 12/10/15. Office loca- 2016. 12/28/15. Office location: NY County. tion: NY County. SSNY designated as Princ. bus. addr.: 1790 Broadway, 8th Fl., agent of LLC upon whom process against Nassau County is an Equal Opportunity Employer. NY, NY 10019. LLC formed in DE on it may be served. SSNY shall mail 11/21/14. NY Sec. of State designated process to: 15 W. 63rd St., Apt. 26A, NY, agent of LLC upon whom process against NY 10023. Purpose: any lawful activity. ADVERTISING PUBLIC AND LEGAL NOTICES it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon Notice of Qualification of LFD Malone NY whom process may be served. DE addr. of LLC. Authority filed with NY Dept. of State Notice of Formation of Blue Sky LLC: c/o The Corporation Trust Co., 1209 on 12/16/15. Office location: NY County. Duncan Dunitz Technologies, LLC. Article Of Orange St., Wilmington, DE 19801. Cert. LLC formed in DE on 12/11/15. NY Sec. The Last Word LLC Organization filed with Secy. of State of of Form. filed with DE Sec. of State, 401 of State designated agent of LLC upon Speaking, Writing, NY (SSNY) on 11/27/2015. Office Federal St., Dover, DE 19901. Purpose: all whom process against it may be served Consulting & Production location: NY County. SSNY designated lawful purposes. and shall mail process to: c/o Ladder agent upon whom process may be 646.434.6738 z 734.237.6614 Capital, 345 Park Ave., 8th Fl., NY, NY lastword.com Carol Dunitz, Ph.D. served against LLC to: 2 Daniel Dr., 10154, principal business address. DE Hillsborough, NJ 08844. Principal Name of LLC: davi3 llc. Arts. of Org. filed address of LLC: 1209 Orange St., Business Address: 170 W 23RD St. #3N, Wilmington, DE 19801. Cert. of Form. NY, NY 10011 Purpose: Any lawful act. with NY Dept. of State: 12/24/15. Office PUBLIC AND loc.: NY Co. Sec. of State designated agent filed with DE Sec. of State, 401 Federal LEGAL NOTICES of LLC upon whom process against it may St., Dover, DE 19901. Purpose: all lawful be served and shall mail process to: purposes. Notice of Qualification of D. E. Shaw Business Filings Inc., 187 Wolf Rd., Ste. Notice of Formation of Favelukes Orienteer X Fund, L.L.C. Authority filed with 101, Albany, NY 12205, regd. agt. upon Consulting LLC. Arts of Org filed with Secy. NY Dept. of State on 8/3/15. Office loca- whom process may be served. Purpose: Notice of Qualification of AmeriNational of State of NY (SSNY) on 10/5/2015. tion: NY County. LLC formed in DE on any lawful act. Community Services, LLC. Authority filed Office location: NY County. SSNY desig- 6/9/15. NY Sec. of State designated with NY Dept. of State on 10/28/15. nated agent upon whom process may agent of LLC upon whom process against Office location: NY County. LLC registered be served and shall mail copy of it may be served and shall mail process to in MN on 6/1/15. NY Sec. of State process against LLC to principal busi- Notice of Formation of Magnetic Midnight the principal business addr.: D. E. Shaw & designated agent of LLC upon whom ness address: 302 W. 86th St. #3C NY, LLC. Arts. of Org. filed with NY Dept. of Co., L.P., 1166 Ave. of the Americas, 9th process against it may be served and NY 10024. Purpose: any lawful act. Fl., NY, NY 10036, Attn: John Liftin, State on 12/3/15. Office location: NY County. Sec. of State designated agent of shall mail process to: c/o CT General Counsel, regd. agent upon whom Corporation System, 111 8th Ave., NY, NY process may be served. DE addr. of LLC: LLC upon whom process against it may be served and shall mail process to: Becker, 10011, regd. agent upon whom process The Corporation Trust Co., 1209 Orange St., may be served. MN and principal business NOTICE OF FORMATION of ANNETTE LO Wilmington, DE 19801. Cert. of Form. filed Glynn, Muffly, Chassin & Hosinski LLP, c/o LLC. Arts of Org filed with Secy. of State of Ny Karin P.E. Gustafson, 299 Park Ave., NY, address: 217 S. Newton Ave., Albert Lea, with DE Sec. of State, 401 Federal St., Dover, MN 56007. Cert. of Reg. filed with MN (SSNY) on 10/15/2015. Office location: DE 19901. Purpose: all lawful purposes. NY 10171. Purpose: any lawful activity. NY County. SSNY designated agent upon Sec. of State, 60 Empire Dr. #100, St. Paul, whom process may be served and shall mail MN 55103. Purpose: all lawful purposes. copy of process against LLC to principal Formation of 371 Harlem LLC filed with business address: 247 W 46th St. Apt. 3804 Notice of Qualification of D. E. Shaw Alkali the Secy. of State of New York (SSNY) NY, NY 10036. Purpose: any lawful act. Portfolios III, L.L.C. Authority filed with NY on 12/8/15. Office loc.: New York County. Notice of Qualification of S.E. MARLEY Dept. of State on 5/12/15. Office loca- SSNY designated as agent of LLC upon CONSULTING, LLC Appl. for Auth. filed tion: NY County. LLC formed in DE on whom process against it may be served. with Secy. of State of NY (SSNY) on 3/3/15. NY Sec. of State designated The principal business loc. and address 11/18/15. Office location: NY County. Notice of Formation of UES EAST 82ND agent of LLC upon whom process against SSNY shall mail process to is Jason LLC formed in Delaware (DE) on STREET L.P. Cert. of LP filed with Secy. it may be served and shall mail process to Hoppy, 195 Hudson St., Apt. 5B, New York, 11/16/15. SSNY designated as agent of of State of NY (SSNY) on 11/17/15. the principal business addr.: D. E. Shaw & NY 10013. Purpose: Any lawful activity. LLC upon whom process against it may be Office location: NY County. Latest date Co., L.P., 1166 Ave. of the Americas, 9th served. SSNY shall mail process to Stephen on which the LP may dissolve is Fl., NY, NY 10036, Attn: John Liftin, Edward Marley, Jr., 4705 Henry Hudson 9/25/2045. SSNY designated as General Counsel, regd. agent upon whom Pkwy., Apt. 11F, Bronx, NY 10471. DE agent of LP upon whom process against process may be served. DE addr. of LLC: Notice of Formation of Atrium Managed Services LLC. Arts. of Org. filed with Secy. addr. of LLC: c/o Corporation Service Co., it may be served. SSNY shall mail process The Corporation Trust Co., 1209 Orange St., 2711 Centerville Rd., Ste. 400, to Ballon Stoll Bader & Nadler, P.C., 729 Wilmington, DE 19801. Cert. of Form. filed of State of NY (SSNY) on 11/27/15. Office location: NY County. SSNY desig- Wilmington, DE 19808. Cert. of Form. Seventh Ave., 17th Fl., NY, NY 10019. with DE Sec. of State, 401 Federal St., Dover, filed with DE Secy. of State, 401 Name and addr. of each general partner DE 19901. Purpose: all lawful purposes. nated as agent of LLC upon whom process against it may be served. SSNY Federal St., Ste. 3, Dover, DE 19901. are available from SSNY. Purpose: Any Purpose: Any lawful activity. lawful activity. shall mail process to: 71 5th Avenue, 3rd Fl., NY, NY 10003. Purpose: any lawful activity. Notice of Qualification of D. E. Shaw Alkali Holdings Alternate III, L.L.C. Authority filed Notice of Qualification of MPNYC GP I LLC. Notice of Qualification of Magma Finco 13, with NY Dept. of State on 5/12/15. Office Notice of Qualification of Calamos Wealth Authority filed with NY Dept. of State on LLC. Authority filed with NY Dept. of State location: NY County. LLC formed in DE on Management LLC. Authority filed with 11/25/15. Office location: NY County. on 11/2/15. Office location: NY County. 3/2/15. NY Sec. of State designated Secy. of State of NY (SSNY) on Princ. bus. addr.: 18 W. 21st St., NY, NY Princ. bus. addr.: 345 Park Ave., NY, NY agent of LLC upon whom process against 12/3/15. Office location: NY County. LLC 10010. LLC formed in DE on 11/4/15. NY 10154. LLC formed in DE on 10/20/15. it may be served and shall mail process to formed in DE on 2/26/27. SSNY desig- Sec. of State designated agent of LLC NY Sec. of State designated agent of LLC the principal business addr.: D. E. Shaw & nated agent upon whom process may upon whom process against it may be upon whom process against it may be Co., L.P., 1166 Ave. of the Americas, 9th be served and shall mail copy of process served and shall mail process to: c/o CT served and shall mail process to: CT Fl., NY, NY 10036, Attn: John Liftin, General against LLC to: CT Corp. System, 111 Corporation System, 111 8th Ave., NY, NY Corporation System, 111 8th Ave., NY, NY Counsel, regd. agent upon whom process Eighth Ave., New York, NY 10011. 10011, regd. agent upon whom process 10011. DE addr. of LLC: 1209 Orange may be served. DE addr. of LLC: The Principal business address: 2020 may be served. DE addr. of LLC: 1209 St., Wilmington, DE 19801. Cert. of Corporation Trust Co., 1209 Orange St., Calamos Ct., Naperville, IL 60563. Orange St., Wilmington, DE 19801. Cert. Form. filed with DE Sec. of State, 401 Wilmington, DE 19801. Cert. of Form. filed Certificate of LLC filed with Secy. of State of of Form. filed with DE Sec. of State, P.O. Federal St., Dover, DE 19901. Purpose: with DE Sec. of State, 401 Federal St., Dover, DE located at: 401 Federal St., Ste. 4, Box 898, Dover, DE 19903. Purpose: all all lawful purposes. DE 19901. Purpose: all lawful purposes. Dover, DE 19901. Purpose: any lawful act. lawful purposes.

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TO PLACE A CLASSIFIED AD, CALL 1800 444 6007 OR VISIT CRAINSNEWYORK.COM PUBLIC AND LEGAL NOTICES

Notice of formation of SEGELOV PHYSI- Notice of Qualification of MetaProp Advisors Notice of Qualification of Panorama Music Notice of Qualification of 201 West CAL THERAPY, PLLC. Art. of Org filed w/ LLC. Authority filed with NY Dept. of State on Festival, LLC. Authority filed with NY Dept. 54th Buyer LLC. Authority filed with NY secy of state of NY (SSNY) on 11/25/15. Office location: NY County. Princ. of State on 11/25/15. Office location: NY Dept. of State on 8/6/07. Office loca- 12/07/15. Office location: NY County. bus. addr.: 18 W. 21st St., NY, NY 10010. LLC County. Princ. bus. addr.: c/o AEG Live, tion: NY County. Princ. bus. addr.: 805 SSNY designated as agent for services formed in DE on 5/26/15. NY Sec. of State 145 W. 45th St., 9th Fl., NY, NY 10036. LLC 3rd Ave., 7th Fl., NY, NY 10022. LLC of process. SSNY shall mail process to designated agent of LLC upon whom process formed in DE on 11/20/15. NY Sec. of formed in DE on 7/18/07. NY Sec. of 80 State Street, Albany NY, 12207. against it may be served and shall mail State designated agent of LLC upon whom State designated agent of LLC upon Purpose: Any lawful activity. process to: c/o CT Corporation System, 111 process against it may be served and whom process against it may be 8th Ave., NY, NY 10011, regd. agent upon shall mail process to: c/o CT Corporation served and shall mail process to: c/o whom process may be served. DE addr. of System, 111 8th Ave., NY, NY 10011, regd. CT Corporation System, 111 8th Ave., LLC: 2711 Centerville Rd., Ste. 400, Notice of formation of We Do Strong, LLC. agent upon whom process may be served. NY, NY 10011. DE addr. of LLC: c/o Wilmington, DE 19808. Cert. of Form. filed Arts of Org filed with Secy. Of State of NY DE addr. of LLC: c/o The Corporation The Corporation Trust Co., 1209 with DE Sec. of State, P.O. Box 898, Dover, (SSNY) on 10/7/2015. Office location: NY Trust Co., 1209 Orange St., Wilmington, Orange St., Wilmington, DE 19801. DE 19903. Purpose: all lawful purposes. County. SSNY designated agent upon DE 19801. Cert. of Form. filed with DE Cert. of Form. filed with DE Sec. of whom process may be served and shall Sec. of State, 401 Federal St., Dover, State, 401 Federal St., Dover, DE mail copy of process against LLC to DE 19901. Purpose: all lawful purposes. 19901. Purpose: all lawful purposes. principle business address: 222 Name of Foreign LLC: AMRO Riverside Dr. #8A NY, NY 10025. Purpose: Construction Services LLC. Auth. filed with Any lawful act. NY Dept. of State: 11/3/15. Office loc.: Notice of Qual. of 110 Greene GP LLC, Auth. filed NOTICE OF FORMATION of FINI PRO- NY Co. LLC formed in DE: 3/24/08. NY DUCTIONS, LLC. Arts. of Org. filed w/Secy Sec. of State designated agent of LLC Sec’y of State (SSNY) 7/30/15. Office loc: NY Co. LLC org. in DE 6/1/15. SSNY desig. of State of NY (SSNY) on 11/20/15. upon whom process against it may be Office location: NY County. SSNY desig- Notice of Formation of Lili Chemla LLC. served and shall mail process to: c/o as agent of LLC upon whom proc. against it Arts. of Org. filed with NY Dept. of may be served. SSNY shall mail copy of nated as agent for service of process. Business Filings Inc., 187 Wolf Rd., SSNY shall mail process to 678 St. State on 12/15/15. Office location: NY Ste. 101, Albany, NY 12205. DE addr. proc. to NRAI, 111 Eighth Ave., NY, NY County. Sec. of State designated agent 10011, the Reg. Agt. upon whom proc. may Nicholas Avenue #54 NY, NY 10030. of LLC: 108 W. 13th St., Wilmington, Purpose: Any lawful activity. of LLC upon whom process against it DE 19801. Cert. of Form. filed with DE be served. DE office addr.: 160 Greentree may be served and shall mail process Sec. of State, 401 Federal St., Dover, Dr., Ste. 101, Dover, DE 19904. Cert. of to: c/o Windels Marx Lane & DE 19901. Purpose: any lawful act. Form. on file: SSDE, Townsend Bldg., Dover, Mittendorf, LLP, 156 W. 56th St., NY, NY DE 19901. Purp: any lawful activities. 10019, Attn: Jeanine Margiano, Esq. Notice of Qualification of 1825 PARK Purpose: all lawful purposes. AVENUE INVESTORS III, LLC Appl. for Notice of Formation of Tick Tock Auth. filed with Secy. of State of NY Series, LLC. Arts of Org filed with Notice of Qualification of QPT 24th (SSNY) on 12/17/15. Office location: SSNY on 9/3/2015. Office location: STREET DEVELOPMENT LLC Appl. for Auth. NY County. LLC formed in Delaware Notice of Formation of FIZZLE TOV LLC. NY County. Princ. bus. addr.: 838 filed with Secy. of State of NY (SSNY) on (DE) on 10/06/15. Princ. office of LLC: Arts of Org filed with Secy of State of NY Greenwich St. PHB, NY, NY 10014. 11/18/15. Office location: NY County. LLC 430 Park Ave., 12th Fl., NY, NY 10022. (SSNY) on 07/31/2015. Office location: NY SSNY designated agent upon whom formed in Delaware (DE) on 11/12/15. SSNY designated as agent of LLC upon County. SSNY designated agent upon process may be served against LLC SSNY designated as agent of LLC upon whom process against it may be whom process may be served and shall to: 440 W 47 St. #3i NY, NY 10036. whom process against it may be served. served. SSNY shall mail process to mail copy of process against LLC to Purpose: any lawful act. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 principal business address: 308 Lenox Corporation Service Co., 80 State St., State St., Albany, NY 12207-2543, Avenue, Suite B, New York, NY 10027. Albany, NY 12207-2543. DE addr. of LLC: regd. agent upon whom and at which Purpose: any lawful act. 2711 Centerville Rd., Ste. 400, process may be served. DE addr. of Notice of Formation of S7HARRISON, LLC Wilmington, DE 19808. Cert. of Form. LLC: c/o CSC, 2711 Centerville Rd., Arts. of Org. filed with Secy. of State of NY filed with DE Secy. of State, Div. of Corps., Ste. 400, Wilmington, DE 19808. Cert. (SSNY) on 11/12/15. Office location: NY PO Box 898, Dover, DE 19903. of Form. filed with DE Secy. of State, Notice of Formation of MALCOLM 308 County. SSNY designated as agent of LLC upon Purpose: Any lawful activity. Div. of Corps., John B. Townsend Bldg., LLC . Arts of Org filed with Secy of whom process against it may be served. 401 Federal St., Ste. 4, Dover, DE State of NY (SSNY) on 09/28/2015. SSNY shall mail process to Corporation 19901. Purpose: Any lawful activity. Office location : NY County. SSNY des- Service Co., 80 State St., Albany, NY ignated agent upon whom process may be 12207-2543. Purpose: Any lawful activity. Notice of Formation of Pearson Place served and shall mail copy of process Holdings, LLC. Arts. of Org. filed with NY Dept. against LLC to principal business of State on 12/3/15. Office location: NY Notice of Qualification of 825 EAST 141ST address: 308 Lenox Avenue, New County. Sec. of State designated agent of STREET INVESTORS III, LLC Appl. for Auth. York, NY 10027. Purpose:any lawful act. 39 EAST 72ND STREET LLC Articles of LLC upon whom process against it may be filed with Secy. of State of NY (SSNY) Org. filed NY Sec. of State (SSNY) served and shall mail process to: c/o on 12/17/15. Office location: NY 12/2/13. Office in NY Co. SSNY desig. Windels Marx Lane & Mittendorf, LLP, 156 County. LLC formed in Delaware (DE) on agent of LLC upon whom process may be W. 56th St., NY, NY 10019, Attn: Charles J. 10/29/15. Princ. office of LLC: 430 Park Notice of Formation of Pez Loco served. SSNY shall mail copy of process Hamilton. Purpose: all lawful purposes. Ave., 12th Fl., NY, NY 10022. SSNY Partners LLC, Art. of Org. filed with to c/o United States Corp. Agents, Inc., designated as agent of LLC upon whom Sec’y of State (SSNY) on 5/29/15. 7014 13th Ave., Ste. 202, Brooklyn, NY process against it may be served. SSNY Office location: NY County. SSNY 11228, which is also the registered shall mail process to c/o Corporation designated as agent of LLC upon whom agent upon whom process against the LLC Notice of Qualification of Argentem Creek Service Co. (CSC), 80 State St., Albany, NY process against it may be served. may be served. Purpose: Any lawful purpose. Partners LP. Authority filed with NY Dept. 12207-2543, regd. agent upon whom SSNY shall mail copy of process to Principal business location: 1155 Avenue of State on 11/13/15. Office location: NY and at which process may be served. DE Seward & Kissel, Att: Hume Steyer, of the Americas , 6th Fl, NY, NY 10036. County. Princ. bus. addr.: 165 W. 91st St., addr. of LLC: c/o CSC, 2711 Centerville One Battery Park Plaza, NY, NY Apt. 8E, NY, NY 10024. LP formed in DE Rd., Ste. 400, Wilmington, DE 19808. Cert. 10004. Purpose: any lawful activities. on 9/18/15. NY Sec. of State designated of Form. filed with DE Secy. of State, agent of LP upon whom process against Div. of Corps., John B. Townsend Bldg., Notice of formation of Kismet Eleven, it may be served and shall mail process 401 Federal St., Ste. 4, Dover, DE LLC. Arts of Org filed with Secy. of to: c/o CT Corporation System, 111 8th 19901. Purpose: Any lawful activity. BENKSHAW ENTERPRISES LLC Articles State of NY (SSNY) on 8/6/15. Office Ave., NY, NY 10011, regd. agent upon of Org. filed NY Sec. of State (SSNY) Location: NY County. SSNY desig- whom process may be served. DE addr. 11/16/2015. Office in NY Co. SSNY desig. nated agent upon whom process may be of LP: 1209 Orange St., Wilmington, DE Notice of Qualification of 1825 PARK agent of LLC upon whom process may served and shall mail copy of process 19801. Name/addr. of genl. ptr. available AVENUE PROPERTY INVESTORS III, be served. SSNY shall mail copy of against LLC to principal business from NY Sec. of State. Cert. of LP filed with LLC Appl. for Auth. filed with Secy. process to 343 E. 74th St., #17CD, NY, NY address: 53 N. Moore Street, NY, NY DE Sec. of State, 401 Federal St., Dover, of State of NY (SSNY) on 12/17/15. 10021. Purpose: Any lawful purpose. 10013. Purpose: any lawful act. DE 19901. Purpose: all lawful purposes. Office location: NY County. LLC formed in Delaware (DE) on 10/06/15. Princ. office of LLC: 430 Park Ave., 12th Fl., NY, NY 10022. SSNY designated as agent of LLC upon whom WANT TO GET YOUR COMPANY process against it may be served. IN FRONT OF 250,000 INFLUENTIAL SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, BUSINESS PROFESSIONALS? NY 12207-2543, regd. agent upon whom and at which process may be served. DE addr. of LLC: c/o CSC, Contact Joanne Barbieri 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of Form. at 212-210-0189 for filed with DE Secy. of State, Div. of classified advertising opportunities. Corps., John B. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

JANUARY 11, 2016 | CRAIN’S NEW YORK BUSINESS | 23 20160111-NEWS--0024-NAT-CCI-CN_-- 1/8/2016 3:44 PM Page 1

GOTHAM GIGS

BY THE BOOKS: Sarah Galbraith’s two companies keep the paychecks flowing to Broadway actors.

Bookkeeper plays starring role on Broadway Child-performance laws,royalty payments,union contracts.Sarah Galbraith makes sure they all add up

lifelong theatergoer, Sarah Galbraith has whose credits included Angels in America and Driving the unusual distinction of being Miss Daisy. She became his head finance person, and SARAH GALBRAITH Broadway’s biggest player in bookkeep- eventually went out on her own, launching book- ing and payroll services. keeping firm Galbraith & Co. in 2005. AGE 47 AHer two Times Square firms—Galbraith & Co. and “You’re dealing with 14 different unions, and all BORN Danbury, Conn. Checks and Balances—provide services have different rules about vacation for 18 of the 29 shows now on Broadway. accruals, dues deductions and 401(k) RESIDES Yorktown Heights, N.Y. The casts of Hamilton, School of Rock and “ I love that plans,” Galbraith said. EDUCATION Columbia University, The Curious Incident of the Dog in the Night- moment There are also child-performance B.A. in history Time have her to thank for getting their when the laws, royalty payments, weekly profit THE PRICE IS RIGHT Broadway checks on time. lights start to and loss reports and local regulations tickets cost so much because it takes Galbraith did not set out to be the for touring companies. “It makes for many people to put on a show, and queen of payroll and bookkeeping. She go down. It’s very special needs,” she said. theaters are small. The largest on just wanted to work in theater—back- still exciting ” In 2011, Galbraith pounced on a Broadway is 2,000 seats; the small- stage, not onstage. chance to modernize production pay- est, just under 1,000. More seats “I started doing theater in high school rolls and launched her second company, cannot be added to defray expenses. and never stopped,” she said. “I’ve never Checks and Balances. Back then, com- And there are fixed labor costs, gov- had a paying job that wasn’t related to the theater.” pany managers wrote up payroll numbers by hand and erned by unions. She worked as a stagehand while getting her bach- phoned them in to their payroll service provider. TRICKY NUMBERS The elor’s degree at Columbia University. That was fol- “Nothing was computerized,” Galbraith recalled. Affordable Care Act and new wage- lowed by a master of fine arts degree in theater man- “You couldn’t get anything sent to you by email.” theft legislation in New York have agement at Columbia’s School of the Arts. The com- She now has nine employees working at her two given accounting folks lots more plicated nuts and bolts of theater bookkeeping she companies. And she still goes to the theater every chance to do. learned on the job: After graduate school, she was she gets. “I love that moment when the lights start to go

BUCK ENNIS hired as an assistant to the producer Richard Frankel, down,” she said. “It’s still exciting.” — MATTHEW FLAMM

24 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0025-NAT-CCI-CN_-- 1/8/2016 4:00 PM Page 1

SNAPS

UJA-Federation’s annual dinner brings in a record $27 million The UJA-Federation of New York celebrated its 40th annual Wall Street dinner in style, raising a record-breaking $27 million. The sold-out event drew more than 1,900 leaders from the Wall Street community to the New York Hilton Midtown on Dec. 7. The money raised goes to help needy New Yorkers of all faiths and Jewish people around the world.

Carol Levin and her husband, Jerry Levin, chairman and CEO of JW Levin Management Partners, and Marc Angela Buchdahl, senior rabbi, Lipschultz, global head of energy Central Synagogue, and Daniel Och, and infrastructure at Kohlberg Kravis CEO of Och-Ziff Capital Management Roberts & Co., at the UJA-Federation Group, at the UJA-Federation of New of New York Wall Street dinner. York gala.

NYC Mission Dress for Success puts on a fundraiser Society Joi Gordon, CEO of ‘friend-raiser’ Dress for Success Worldwide, and Rose Stuckey Kirk, president of the Verizon Foundation and chair of Dress for Success, at a Dec. 9 Jean Shafiroff, a fundraising breakfast member of the New for the organization, York City Mission which helps disadvan- Society’s board, and taged women find Elsie McCabe employment. Thompson, president of the society, at a luncheon for the organization on Dec. 16 at Michael’s restaurant. Designer Norma Kamali, Daniella Yacobovsky, co-CEO of BaubleBar, Erica Hill, co-anchor of Weekend Today, and Sarah Robb O’Hagan, president of Equinox, at the Dress for Success breakfast at the Rainbow Room. The event raised $130,000.

Socialite Ann Rapp, Randi Schatz, president of Avenue Magazine, and fashion designer Zang Toi at the lunch hosted by Shafiroff in order to introduce her SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS

TOP: UJA-FEDERATION OF UJA-FEDERATION NEWTOP: HOFFMAN/PATRICK YORK, OWEN MCMULLAN, LEFT: ILYA SAVENOK BOTTOM RIGHT: BOTTOM friends to the Mission Society, which provides a variety of programs for the poor. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

JANUARY 11, 2016 | CRAIN’S NEW YORK BUSINESS | 25 20160111-NEWS--0026-NAT-CCI-CN_-- 1/8/2016 3:44 PM Page 1

EXECUTIVE MOVES

47, joined the multiplat- dent of global creative tal agency as vice president Grassi & Co.: Ronald Honka, NBCUNIVERSAL form media company as intelligence. He was previ- and director of client ser- 46, joined the accounting HILARY SMITH, executive vice president of ously senior planner at vices. She was previously and auditing services firm 45, was promoted to human resources. She was TBWA/Chiat/Day LA. vice president of marketing as an audit partner of finan- previously senior vice pres- Experian Marketing and group engagement cial services. He was previ- senior vice president of ident of people at Services: Bridget Bidlack, 44, director at Huge. ously a director at corporate communica- AppNexus. joined the marketing com- Duncan Snowden, 36, was EisnerAmper. tions at the media com- DGital Media: Christine pany as vice president of promoted to vice president PRoPS: Pat pany. She was previously Fontana, 53, joined the global product manage- of strategy. He was previ- Stern, 49, senior vice president of digital media company as ment. She was previously ously group strategy joined the communications for USA senior vice president. She vice president of enterprise director. online mar- Network. was previously senior vice products at Rocket Fuel Inc. MSG Networks: Eric Shih, 33, ketplace for president and director at Parsons Brinckerhoff: Steven was promoted to vice pres- creators as MediaVest. Paquette, 61, joined the ident of business strategy strategic Metro-North: Justin R. engineering and profes- and development at the adviser. He was previously TitleVest: Timothy Birch Family Services: Vonashek, 35, joined the sional services consulting media company. He previ- global chief creative officer Oberweger, 40, joined the Matthew Sturiale, 60, joined transit organization as vice firm as senior vice presi- ously held the position of at iCrossing. title insurance agency as the nonprofit organization president of system safety. dent and director of the director of business devel- Brooklyn Public Library: managing director of busi- as president and chief He was previously the chief water practice. He was pre- opment. Story Bellows, 36, joined the ness development and executive. He was previ- safety, security, emergency viously vice president and Lend Lease library system as chief counsel. He was previously ously interim CEO at the preparedness and regulato- national sales manager at Americas: innovator and performance vice president of counsel at Young Adult Institute. ry compliance officer at Jacobs Engineering. John officer. She was previously Fidelity National Title. Triangle Equipment Finance: MBTA Commuter Rail in Irongate Management: Donohoe, 43, co-founder and director at SunTrust Robinson Michael Gallina, 47, joined Boston. Ashley Monroe, 36, joined joined the the Mayor’s Office of New Humphrey: Peter Lawson, 40, the financial company as Andy & Evan Industries Inc.: the property management project Urban Mechanics in joined the corporate and president. He was previ- Isaac Maleh, 37, joined the firm as senior vice presi- manage- Philadelphia. investment banking ser- ously an executive vice children’s clothing maker dent of operations. She was ment and construction Court Square Law Project: vices company as a director president at Lake as executive vice president. previously vice president of services company as head Karena Rahall, 48, joined and equity research analyst Equipment Leasing Inc. He was previously presi- operations at Stonemark of treasury. He was previ- the law firm as executive for biotechnology. He was Friedland dent at Flyers Group USA. Management. ously treasurer at Apollo director. She is currently a previously a senior health Realty CallisonRTKL: Eric Maria Astudillo, 55, joined Global Management. visiting assistant professor care analyst at Mizuho Advisors: Lagerberg, 54, was promot- as vice president of behav- Tolliver Williams, 39, joined at the Seattle University Securities USA. Sarah Jones- ed to executive vice presi- ioral and health programs. as head of capital solutions. School of Law. Yatin Suneja, 30, joined as a Maturo, 33, dent at the architectural She was previously director He was previously senior Simone Development Cos.: director and equity joined the design company. He previ- of mental-health services director of equity capital Sara Rubenstein, 39, joined research analyst for commercial ously held the position of and deputy director for markets at Tishman the real estate investment biotechnology. He was real estate agency as presi- principal. health and wellness at Speyer. and development company previously a vice president dent. She was previously DeVries Global: Daniel Maree, Children’s Aid Society. Ashutosh as general counsel. She was and equity research analyst first vice president at CBRE. 28, joined the public- Big Spaceship: Laura Aman, 42, previously an associate at Cowen and Co. XO Group: Michelle Dvorkin, relations firm as vice presi- Breines, 33, joined the digi- joined as counsel for the Americas vice presi- region at Lend Lease. dent and Lending.com: Liz Verrier, 41, investment joined the lending platform manager. as general counsel. She was BUSINESS BREAKFAST FORUM: He was previously a direc- previously vice president CORPORATE MEMBERS tor at HSBC. and senior counsel at Room to Read: Luis Crouch, American Express. 63, was appointed a board Kramer Levin Naftalis & member of the nonprofit Frankel: Darina F. Delappe, THANK YOU FOR YOUR SUPPORT organization. He continues 39, joined the law firm as as vice president and chief senior counsel. She was Anheuser-Busch Con Edison technical officer at RTI previously an attorney at International. Dechert. Bolton-St. Johns, LLC Global Strategy Group Fidelis Care: Steven Caroline A. Levin, 30, joined Margolies, 49, joined the as an associate. She was Building Trade Employers’ Kasirer Consulting, LLC health insurance company previously an attorney at Association as clinical programs med- Dechert. Manatt, Phelps & Phillips, LLP ical director. He was previ- Greenberg Traurig: Meredith Cablevision ously vice president at Beuchaw, 34, joined the Nicholas & Lence Phoenix House New York. law firm as a shareholder. Capalino+Company Communications, LLC Jared Sender, 43, joined as She was previously a assistant vice president. He senior associate at White CUNY Tonio Burgos & Associates, Inc. was previously senior & Case. director at New York City Iskender Catto, 51, joined as Health and Hospitals Corp. a shareholder. He was pre- Synthesio: Janet Megdadi, 42, viously a partner at joined the global social- McDermott Will & Emery. intelligence platform as Stephen Pepper, 41, joined chief revenue officer. She as a shareholder. He was was previously senior vice previously counsel at Davis president of sales and Polk & Wardell. account management at RichRelevance. EXECUTIVE PROMOTIONS TriPlay: Matt Downing, 47, The fastest way to get an joined the cloud-services announcement into Crain’s company as chief market- Photo Credit: Buck Ennis is to submit online. Fill out the ing officer. He was previ- form at CrainsNewYork For membership information, contact Courtney Williams at (212) 210-0257 ously vice president of .com/execmoves. The or [email protected]. marketing and sales at Executive Moves column is SiriusXM. also available online.

26 | CRAIN’S NEW YORK BUSINESS | JANUARY 11, 2016 20160111-NEWS--0027-NAT-CCI-CN_-- 1/8/2016 7:03 PM Page 1

PHOTO FINISH

Diamonds are (good business) forever

t Premier Gem, a wholesaler overlooking Fifth Avenue, President Stuart Samuels last week unwrapped two cushion-cut diamond rings from Apaper packages. Though diamonds have changed little since Samuels opened in 1967, New York’s biggest export industry has undergone seismic shifts. “If someone who was working in diamonds 20 years ago were to show up now,” he said, “the business would look completely foreign.” The city once hosted dozens of dealers buying exclusively from De Beers, the cartel that con- trolled 80% of the world’s diamond supply. As other mining giants gained market share, diamond-cutting moved to Tel Aviv and then Mumbai, where labor is cheaper, leaving nine cutters in New York today contracted with De Beers. With exports at $14.4 billion in 2014, New York’s diamond district—centered on West 47th Street between Fifth and Sixth avenues—remains strong. Steady U.S. demand has absorbed a drop in China and the holiday season capped what Rapaport Diamond Reports said was an 8% rise in sales. “People are still getting engaged,” Samuels said. “And women still want diamonds.” — PETER D’AMATO PETER D’AMATO

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